Blockchain News

Rodeo Finance Release Statement Amidst $1.7M Hack, Promises to Recover Lost Funds

The Leveraged Yield protocol on the Arbitrum Network suffered a $1.7M hack. The protocol is taking steps to recover the stolen funds and ensure user security.

Rodeo Finance, a popular Leveraged Yield protocol running on the Arbitrum Network, recently fell victim to a significant hack resulting in the loss of approximately $1.7 million from its lending pool. 

In response to this unfortunate incident, the protocol has issued an official statement to its users, shedding light on the situation and reassuring them that efforts are underway to recover the stolen funds.

Rodeo Finance expressed its commitment to resolving the matter and stated that it had enlisted the help of multiple auditors to investigate the hack. The statement revealed that around $880,000 was stolen from the lending pool, but approximately $810,000 of the stolen funds had been successfully reclaimed.

To safeguard users' funds, the protocol has temporarily paused its operations. The team emphasized maintaining this status until they finalize and implement a comprehensive remediation plan. They are collaborating closely with security experts to ensure the best possible outcome.

According to Peckshield, the hacker exploited one of their oracles, precisely one designed for Camelot's Uniswap V2 pools. The hacker executed a "sandwich attack" shortly after the oracle's price update, artificially inflating the price to borrow from the lending pool. Although the attacker managed to siphon some funds, approximately $810,000 remained in the Rodeo farm, which has been successfully retrieved.

The protocol is also actively cooperating with partner organizations to track down and freeze the stolen assets, aiming to mitigate the impact of the attack.

Moving forward, Rodeo Finance intends to work closely with security auditors to finalize a recovery plan. They are committed to sharing this plan with their community as soon as it is deemed secure, ensuring transparency throughout the process.

While this incident is undoubtedly disheartening, Rodeo Finance's swift response and dedication to recovering the lost funds instill confidence in the protocol's commitment to its users' security and financial well-being.

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