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Hackers drain $100M off Solana-based DeFi platform Mango Markets
61–70 of 105 posts
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#62"According to Lim, the hacker funded the main account (account A) and offered 483mm units of $MNGO perps on the order book. The attacker then funded a second account (account B) with 5mm $USDC collateral. Then, he/she used the funds to buy the 483mm units of $MNGO perps (at a price of $0.0382 per unit). The perpetrator’s actions made $MNGO’s spot market price, reaching as high as $0.91. $MNGO/USD price of $0.91 per u…
Market manipulation.
AKA “not a legitimate transaction”.
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#63Earlier quoted context omitted.
Sounds like what the space needs is regulation... You know, to provide assurance that automated protocols are written strongly, and legal recourse against bad actors.
Regulating bodies are not capable of performing cyber-security protocol audits on emerging technology. 'Throwing regulation at the problem' is an embarrassing proposal that I'm sure many regulating bodies will pat you on the back for stanning.
But regulating bodies could require adequate insurance against losses from hacking.
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#64Earlier quoted context omitted.
First question: yes, the missing part is that the attacker also had to buy a bunch of spot mango tokens on centralized exchanges to drive the price up after establishing the large position. Second question: Mango Markets lets you trade perpetual futures with leverage, so you don't need collateral equal to the notional value of the contracts you buy.
Thank you! It makes sense now, and also... wow.
To you maybe:)
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#65This time it's one of Solana's largest DeFi protocols. Are these guys asleep at the wheel? I wonder if these hacks can ever be fully prevented.
Yeah, you can solve this with the Blockchain
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#66PSA: In normal, regulated, markets, this kind of "economic hack" is called "fraud" and gets you in trouble (fine and/or jail).
Every time I have dis'd crypto in comments on HN they always loose karma. This is the first discussion with people that agree with me. I have found my tribe:)
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#67Earlier quoted context omitted.
I'm not sure if this has much specific relation to the Mango hack, but you raise an interesting point mentioning the possibility of a developer hacking his own network (who would be more qualified to do so?) - my broader point is this: there is a lot of incentive to get these platforms up and running, and not always a lot to build them safely and even less to truly audit them. Often the developers make their money up…
Sounds like what the space needs is regulation... You know, to provide assurance that automated protocols are written strongly, and legal recourse against bad actors.
Regulations are for people that are not Peter Thiel.
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#68"According to Lim, the hacker funded the main account (account A) and offered 483mm units of $MNGO perps on the order book. The attacker then funded a second account (account B) with 5mm $USDC collateral. Then, he/she used the funds to buy the 483mm units of $MNGO perps (at a price of $0.0382 per unit). The perpetrator’s actions made $MNGO’s spot market price, reaching as high as $0.91. $MNGO/USD price of $0.91 per u…
> But the crypto sector doesn't want exchange regulation, so they don't have the "circuit breakers" that, say, the CBOE does.
If this platform doesn't have circuit breakers, it's simply because either they didn't think of it, they didn't think it was important, or they thought it was a bad idea.
There's nothing in crypto that clashes with the idea of a circuit breaker, it's completely orthogonal. And it shouldn't be too hard to code into the smart contract.
By the way I believe only some stock exchanges in the world have circuit breakers, it's not something as universal or required as you make it seem.
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#69Earlier quoted context omitted.
Many of the recent bridge hacks were easily preventable. Unfortunately when the dev himself is the hacker, no amount of active development would fix these issues
I'm not sure if this has much specific relation to the Mango hack, but you raise an interesting point mentioning the possibility of a developer hacking his own network (who would be more qualified to do so?) - my broader point is this: there is a lot of incentive to get these platforms up and running, and not always a lot to build them safely and even less to truly audit them. Often the developers make their money up…
> What the average Joe need to know is that DeFi, while capable of producing huge gains, also comes with a lot of risk both market-wise and protocol safety-wise.
Gains have to come from somewhere. If they're not backed by something in the real world - say capital investment making some process more efficient or whatever - then the alternatives are that they're illusionary or backed by shenanigans.
Re: Hackers drain $100M off Solana-based DeFi platform Mango Markets
#70PSA: In normal, regulated, markets, this kind of "economic hack" is called "fraud" and gets you in trouble (fine and/or jail).
Every time I have dis'd crypto in comments on HN they always loose karma. This is the first discussion with people that agree with me. I have found my tribe:)
Very funny:)