Hackers stole almost $484k after inserting malicious code into Ledger’s Connect Kit on GitHub on Thursday. Several decentralized finance (DeFi) protocols have been impacted and users are being warned to avoid using decentralized apps (dApps) until further updates.
Ledger Exploit Drained $484K, Upended DeFi; Former Staffer Linked to Malicious Code
Hackers stole almost $484k after inserting malicious code into Ledger’s Connect Kit on GitHub on Thursday. Several decentralized finance (DeFi) protocols have been impacted and users are being warned to avoid using decentralized apps (dApps) until further updates.
Ledger Exploit Drained $484K, Upended DeFi; Former Staffer Linked to Malicious Code
Hackers stole almost $484k after inserting malicious code into Ledger’s Connect Kit on GitHub on Thursday. Several decentralized finance (DeFi) protocols have been impacted and users are being warned to avoid using decentralized apps (dApps) until further updates.
BREAKING: Sushi DeFi Security Breach: CTO Sounds Alarm, SUSHI Price Drops 4%
In a significant blow to the decentralized finance (DeFi) sector, the Sushi DeFi protocol has fallen victim to its second exploit this year.
The protocol’s Chief Technology Officer (CTO), Matthew Lilley, has issued a stark warning to users, advising them to refrain from using any decentralized applications (dApps) until further notice.
Sushi And Zapper Frontends Compromised
The latest breach has prompted concerns about the security and integrity of the Sushi DeFi protocol and other associated dApps. According to Lilley, a widely-used web3 connector has been compromised, allowing malicious code injection that affects numerous dApps.
Specifically, dApps that use the LedgerHQ/connect-kit, a dApp that allows users to connect other dApps to their Ledger hardware wallets, are considered vulnerable. Notably, Lilley’s warning underscores the severity of the situation, emphasizing that this is not an isolated attack, but a large-scale assault targeting multiple dApps.
Further investigation by security experts has revealed a potential supply chain attack on the ledger connect kit. The attacker allegedly successfully injected a wallet-draining payload into the popular Node Package Manager (NPM), impacting several prominent dApps, including Hey and others.
Additionally, it has been discovered that the Zapper and Sushi frontends have been hijacked, exacerbating the scope of the breach.
Slowmist, a module of Ledger, further confirmed that their system was hijacked and tampered with during the supply chain attack. This compromised the integrity of the ledgerhq/connect-kit library, which is relied upon by many dApps.
As a result, users are urged to exercise caution when conducting any dApp-related operations and to scrutinize requests for wallet information that may appear unexpected.
Malicious Connect Kit Neutralized?
In an official statement, Ledger has confirmed the identification and removal of a malicious version of the Ledger Connect Kit. The company assures users that their Ledger devices and Ledger Live remain uncompromised.
The company stated that a genuine version of the Connect Kit is currently being pushed to replace the malicious file. Ledger advises users to refrain from interacting with any dApps at the moment for their safety.
The company pledges to provide updates as the situation develops, ensuring users stay informed about the ongoing efforts to address the security breach.
SUSHI’s Uptrend Threatened By Exploit Fallout
In light of recent events affecting the Sushi DeFi protocol, its native token, SUSHI, has experienced a decline of over 4% within the past hour, reaching a low of $1.590.
Before the exploit, SUSHI had been exhibiting a notable uptrend structure on its 1-day chart, marked by higher highs and higher lows. However, with the loss of its crucial support level at $1.961, there is a potential invalidation of the previously established uptrend.
The uncertainty surrounding the protocol’s native token raises the possibility of further downside in SUSHI’s price action. If a sustained downtrend continues, the next significant support level for SUSHI is located at $1.084.
Featured image from Shutterstock, chart from TradingView.com
DeFi Protocol Sushi’s CTO Warns of Possible Exploit
Decentralized finance (DeFi) protocol Sushi has reportedly been hit by a front-end exploit, with the company’s CTO issuing a warning about an industry-wide exploit related to a “commonly used” web3 connector.
DeFi Protocol Sushi’s CTO Warns of Possible Exploit
Decentralized finance (DeFi) protocol Sushi has reportedly been hit by a front-end exploit, with the company’s CTO issuing a warning about an industry-wide exploit related to a “commonly used” web3 connector.
DeFi Protocol Sushi’s CTO Warns of Possible Exploit
Decentralized finance (DeFi) protocol Sushi has reportedly been hit by a front-end exploit, with the company’s CTO issuing a warning about an industry-wide exploit related to a “commonly used” web3 connector.
Sushi taps into ZetaChain to begin testing native Bitcoin DeFi swaps
Decentralized exchange Sushi will test native Bitcoin DeFi functionality that promises to allow users to swap BTC across 30 blockchain networks.
Bitcoin Is Coming to Sushi as DeFi Platform Expands to ZetaChain
The move allows users to access the liquidity of bitcoin on decentralized finance (DeFi) without going through intermediaries like wrappers.
Decentralized Exchange Sushi Expands to Aptos Blockchain
Sushi, the decentralized exchange (DEX) that has $350 million in locked value, has expanded its services to a layer-1 blockchain Aptos.
Ex-Sushi CTO Led NFT Lending Platform Astaria Rolls Out to Public
After months in a closed beta, the NFT lending platform has witnessed the highs and lows of its competitors in the space and aims to boost NFT market liquidity while protecting the interests of lenders and borrowers.
SUSHI Down 45%: What’s Driving the Decline?
The price of SUSHI, the native token of SushiSwap, a decentralized exchange, is down 45% from February 2023, when prices peaked at $1.63, the highest level in six months.
SushiSwap Token Redesign
This contraction is despite the successful implementation of a proposal to redesign SUSHI’s tokenomics, making SUSHI, a governance token, more deflationary.
The proposal was first made in December 2022 by Chief Chef Jeremy Grey and was voted on and agreed on by the community early this year.
The proposal passed with a majority vote and will seek to reduce the SUSHI supply over the years. At the same time, it will increase the rewards for liquidity providers while encouraging users to stake SUSHI for longer.
Grey argued that this implementation would promote decentralization while making the protocol have “more equitable governance with sustainable economics.” Eventually, by redesigning SUSHI’s tokenomics, the goal will be to keep annual inflation between 1% to 3%.
The latest data from MoneyPrinter shows that SUSHI’s annual inflation stands at 1.23%, aligning with SushiSwap’s tokenomics redesign. If anything, this inflation rate is lower than Bitcoin, which has an annual issuance rate of 1.82%. SUSHI’s inflation is also lower than Cardano, which has an annual emission of 1.79%.
While analysts expect low inflation to support prices in the long haul, the performance of SUSHI in the first half of 2023 has been dismal. SUSHI is down 45% from 2023 highs and 99% from 2021 peaks when the token changed hands at around $22.
Blame The Winter, Hack, And Regulators
While the markets have recovered, some, including SUSHI, could still be reeling from the effects of the crypto winter.
Last year, Bitcoin, the largest coin by market cap, crashed by over 70% after peaking at over $69,000 in November 2021. The collapse of BTC dragged the altcoin market with it, forcing the more volatile assets even lower, adversely affecting SUSHI.
As an illustration, SUSHI is trending at 2022 lows at around $0.89, retesting a critical multi-month support level.
Prices are also capped as investor confidence took a hit following SushiSwap’s RouterProcessor2 contract exploit in early April 2023. Hackers ended up with $3.3 million. Although the flaw has since been patched, the reputational damage associated with the vulnerability dents investor confidence.
It remains to be seen how SushiSwap will navigate potential new regulations, particularly those from the United States. Some policymakers have taken a negative stance towards cryptocurrency, causing users in the country to hesitate to engage with DeFi protocols due to potential legal consequences.
SushiSwap to Launch Claims Website for Vested SUSHI Tokens
Customers can claim their SUSHI until April 23.
Sushi DEX Approval Contract Exploited For $3.3M
Developers asked users to revoke contracts as a security measure early Sunday.
GoldenTree Moves $5M of SUSHI, Sparking Fear It’s Exiting
Much of the asset manager’s Sushi trove was deposited at Binance in the last 24 hours.
Sushi DAO, Key Contributor Served With SEC Subpoena
Sushi DAO and Head Chef Jared Grey were served with a subpoena by the U.S. Securities and Exchange Commission, the DAO revealed Tuesday.
SushiSwap To Redirect 100% Trading Fees To Treasury
While the DeFi market has continued to mirror the crypto market rally, more innovations have been introduced to the ecosystem. In today’s news, SushiSwap, the sixth-largest decentralized exchange (DEX) by 24 hours trading volume, has passed a proposal to relocate 100% of its trading fees to the SushiSwap treasury for maintenance and expenses.
Related Reading: SushiSwap Head Chef Suggests Cooking Up New Token Model – Will The DEX Survive 2023?
SushiSwap Introduces New Update
This new update comes after CEO Jared Grey voiced warnings that the exchange treasury stability is numbered as it has “only 1.5 years of treasury runway left,” despite having cut down the annual operating expenses from $9 million to $5 million during the ongoing crypto winter.
According to a presented governance proposal by the developers of the SushiSwap decentralized exchange, which was passed on January 23, the SushiSwap exchange will now extend the usage of trading fees by redirecting them to the exchange’s treasury to enhance the operation and maintenance of the exchange over the next one year.
The proposal noted, “Revenue to the treasury will be 50% ETH and 50% USDC, with a projection of ~$6m being earned over the next year if this proposal were to pass.” In another proposal passed the same day, approximately 99.85% of voters voted in favor of “clawing back” 10,936,284 unclaimed SUSHI ($14.8 million) tokens to be rewarded to early liquidity providers during the DEX’s launch in 2020.
SushiSwap Painful Loss And Recovery
Undoubtedly the crypto winter hit most projects in the industry, including DeFi platforms such as SushiSwap. Last December, SushiSwap CEO Jared Grey revealed that the DEX experienced a $30 million loss over the past 12 months on incentives for liquidity providers (LPs).
To counter that loss and initiate recovery, Grey revealed plans to refine SushiSwap’s tokenomics so that LPs are no longer bankrolled with emissions and redesign the complete model of bootstrapping liquidity on the exchange.
The “Kanpai” governance proposal, which aims to relocate trading protocol fees to the treasury, was also referred to by Grey when illustrating the plans to update the SushiSwap exchange.
“Put simply, it (Kanpai) allows the protocol to rebuild its cash reserves to continue to pay competitive wages, pay for critical infrastructure, & to diversify its Treasury with funds collected in the base pairs of assets, like ETH, stablecoins, etc. Kanpai is a temporary solution,” Grey stated.
Speaking of SushiSwap, the protocol’s native token, SUSHI, has been in a rally, following the rest of the DeFi sector.
SUSHI has surged by over 40% in the last 30 days; meanwhile, at the time of writing, SUSHI trades at $1.34, down by 1.4% in the previous 24 hours and with a trading volume of $58.6 million in the same period.
SushiSwap’s new DEX aggregator will ’10x our market share’ — Head Chef
SushiSwap’s roadmap for the coming year includes the development of a DEX aggregator, a decentralized incubator, and “several stealth projects.”
Inconsistent Metrics Indicate Further Struggle For SUSHI – Colder Winter Ahead?
SUSHI is having a hard time gaining some ground as the market declines again. Today, SUSHI has lost more than 5% of its value, following the trend of other major cryptocurrencies such as Bitcoin and Ethereum.
Here’s a quick glance at how SUSHI is performing:
- Optimism manifested itself as an acceleration in development activity and an increase in whale demand for SUSHI
- Technicals and metrics imply significant bearishness
- SUSHI could wrap up 2022 in a bumpy ride
The token’s dismal showing is in contrast to some positive trends, such as rising developer engagement (as reported by Santiment) and rising whale interest (as reported by WhaleStats). Metrics and technicals, however, suggest that SUSHI may close out the year with negative numbers.
JUST IN: $SUSHI @sushiswap now on top 10 purchased tokens among 100 biggest #ETH whales in the last 24hrs
We’ve also got $MOH, $QRDO, $QWLA, $aDAI & $BOBA on the list
Whale leaderboard: https://t.co/N5qqsCAH8j#SUSHI #whalestats #babywhale #BBW pic.twitter.com/TWNaSe2p5T
— WhaleStats (tracking crypto whales) (@WhaleStats) December 10, 2022
SUSHI Technicals Not Looking Great
The coin has found support at $1.013 and is presently trading at $1.119. The price is at a red candle, supporting a further drop in the near future. Money Flow Index verifies the decline that has started despite RSI readings near neutral levels.
This pessimism is bolstered by the gloomy data from CryptoQuant. Exchange reserve data have grown over the past few days, despite increased development activity and whale interest being incredibly favorable indicators.
The oversold level of SUSHI’s stochastic relative strength index (RSI) may serve as a catalyst for a pullback, notwithstanding the stock’s bearish sentiment.
The Bollinger band is in a position that is close to neutral, but its moving average acts as resistance at $1.263. However, the present price action is persistently pushing the bottom half of the range, which could result in a negative outcome for the token.
Drastic Measures Required?
Currently, the price is attempting to settle near $1.114, which could indicate that bulls and bears will remain in a prolonged deadlock. CMF data for SUSHI may suggest a turnaround.
Messari’s revealing of a major decline in SUSHI’s volatility could help investors and traders gain some momentume. Sharpe’s ratio indicates that the token’s performance indicates very low returns relative to its volatility.
The current state of the crypto may be the result of recent reports that the DEX’s finances are not in good shape, and its CEO Jared Grey is considering severe measures to remedy the situation.
With DeFiLlama observing repeated reductions in TVL for SUSHI, investors and dealers of the token may have a colder winter this year.
SUSHI Latest Feats Are Quite Impressive, But Crypto Must Overcome Rough Terrain
SUSHI has shown strong bullishness, ranking as the most influential project in Avalanche and breaking into the top 10 in Altrank on Polygon.
At this time of writing, CoinGecko is estimating a 24% increase in value, which is a 10% increase from where it was.
The following is a quick rundown of some of SUSHI’s more notable qualities that demonstrate its “tasty” status:
- There was a 4% increase in TVL.
- Positive environment, but unfriendly market conditions are a drag for the token
- Future discomfort is possible, but the investment case remains strong
Most Influential Project on Avalanche$SUSHI @SushiSwap$JOE @traderjoe_xyz$FITFI @StepApp_$TIME @wonderland_fi$CRA @PlayCrabada$ALBT @allianceblock$BIFI @beefyfinance$PNG @pangolindex$CQT @Covalent_HQ$ANY @MultichainOrg#AVAX $AVAX pic.twitter.com/9ozC2j4Wrp
— AVAX Daily (@AVAXDaily) November 21, 2022
In addition, DeFiLlama has noticed a 4% rise in TVL. All in all, investors and traders have a lot to be optimistic about here.
But the technicals of the coin suggest that the bullishness is fleeting, as it is being carried around by the present bear market.
SUSHI Remains Stale
Since its crash in May 2022, SUSHI’s price has barely moved. Also, the token has been trading between $2.083 and $0.861 for some time now.
This coin, however, has been making higher highs and lower lows despite the bear market since the latter half of Q2 this year.
The present price surge, however, is not only due to its recent successes, but also to the active development that Santiment has seen.
Image: TradingView
Recently, the team issued an update on its focused liquidity pool, which they claim would increase capital utilization efficiency.
At present, the token’s long-term price action is a spreading triangle. This indicates an increase in volatility and a possible price reversal.
This coincides with the expansion of the Bollinger band at the current market price. On shorter timelines, the present price has already made it past the middle band, but on a daily scale, the price is still below the middle band.
While the regression channel partially confirms a possible reversal, below-neutral RSI readings impede this possibility. Chaikin’s money flow index, which currently stands at -0.12, likewise favors the bears.
Caution Advised For Traders
If the price continues to struggle and closes the day with a red candle, SUSHI may fall to $1.083 in value. If the bulls are unable to defend this price level, a further decline to $1.012 is possible.
Sushi would likely be an excellent investment if market conditions were less unfriendly.
With the EMA ribbon indicating that a short position is significantly more plausible, resistance at $1.375 will be greater despite SUSHI’s favorable circumstances.
As the situation steadily improves, SUSHI appears to be an appealing investment for portfolio diversification.
SUSHI total market cap at $151.5 million on the daily chart | Featured image from Coin Edition, Chart: TradingView.com