DeFi’s Meter Passport token bridge platform has accrued a loss of $4.4 million due to a smart contract hack which also led to Hundred Finance losing $3.3m. The Meter Passport is nothing but a token bridge that is highly compatible with the blockchain of Ethereum and most of its sidechains.
Needless to say, this attack heavily affected the Moonriver side of the bridge. For the uninformed, Moonriver is also a smart contract platform that has been based on the Kusama network of Polkadot. Hundred Finance is a crypto lending platform that is based on the code for Compound Finance.
DeFi Meter Team Has A Safety Deposit That They Need To Break
On the 5th of February, and through a lot of transactions, about $4.4 million in Binance Coin and wETH were minted through a wrong trust assumption found in the code. This was repeated in a 6th February statement from the DeFi Meter team. In this case, it is expected that an arbitrary amount of ETH was previously deposited to Meter which the hacker went on to use to mint tokens through the alleged vulnerability.
The attack on the DeFi definitely led to a cascade effect throughout the Kusama-based Moonriver ecosystem. After draining Meter of its reserves of wETH and BNB, the attacker went on to sell the BNB on SushiSwap, which is a popular decentralized exchange.
This led to a price crash of 77% in the price of BNB on Moonriver at that particular time. As it stands, a large number of traders took advantage of this price crash in buying cheap BNB. They went on to use the tokens mostly as collateral on Hundred Finance in order to take out loans on ETH, MIM, and Frax.
The DeFi Meter team has already committed to reimbursing the community, and Hundred Finance for the losses that have been incurred due to this hack. The team went on to state on the 6th of February that it had set aside around $4.4 million in MTRG tokens to cover the initial losses.
