BetterBank, a decentralized finance (DeFi) protocol, became the target of an exploit that resulted in a loss estimated between $1 to $5 million.
Overview of the Exploit
BetterBank reported unauthorized reward minting tied to rogue liquidity pairs. The exploit was noticed within the last day, inciting speculation about the source of the losses.
Response from BetterBank Team
The protocol team reacted promptly to mitigate the attack, compensating the losses through its reserves. BetterBank also plans to relaunch its rewards program for liquidity providers with a new token airdrop and a revamped smart contract.
Market Impact and Reputation
Following the exploit, BetterBank's total liquidity dropped to $7.96 million. The protocol also suffered reputational damage, reflected in a more than 15% decline in the price of the PulseX token.
The BetterBank exploit highlights vulnerabilities in relatively small DeFi applications and the importance of effective liquidity monitoring.
