ALEX Protocol, a leading DeFi protocol, suffered a loss of $8.37 million due to an attack on June 7. A flaw in its self-listing logic led to this incident.
Vulnerability and Losses of ALEX Protocol
On June 7, ALEX Protocol experienced an attack due to a vulnerability in its self-listing logic, resulting in losses totaling $8.37 million. The losses impacted multiple asset pools, including STX, sBTC, USDC, and WBTC.
Compensation Plans and Security
ALEX Protocol announced a full compensation plan for affected users using USDC. The protocol has also suspended self-listing functionality and intends to conduct thorough code audits to enhance security.
Market Impact and Comments
The market anticipates changes following the ALEX incident, with the community calling for transparency. Graham Krueger from Cryptocurrency Insights remarked, "ALEX's prompt compensation plan signifies responsibility but underscores systemic vulnerabilities in DeFi protocols requiring urgent reforms."
The ALEX Protocol incident highlights ongoing risks associated with self-listing functionalities in crypto markets. The protocol will focus on improving its security and restoring user trust.
