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- In a DeFi hack, Visor Finance lost 8.8 million tokens, simultaneously resulting in VISR prices falling from $0.93 to $0.0659.
- Visor Finance plans a migration to reimburse users. The hacker’s identity remains unknown, but he manages to purchase ETH from the compromised tokens while maintaining his anonymity via Ethereum’s Tornado Cash.
- Not the first time Visor Finance, built on Uniswap V3, suffered an attack. It suffered many this year, while this hack only affected holders and stakers of the VISR.
Visor Finance faces a multi-million dollar hack, the latest DeFi Protocol to go through a hack. Visor Finance is a DeFi project based on Ethereum that aims to support programmable liquidity, which lost about 8.8 million VISR tokens in a hack in which a hacker exploited the reentrancy bug. At the time of the hack, the VISR token was trading for $0.93, which is estimated to be a loss of $8.2 million. The hackers sold the tokens via Uniswap following the withdrawal, as per the reports. The hack affected VISR prices massively, bringing it 86% down, from $0.93 to $0.0659.
Details from the Event
The team shared details regarding the hack, explaining the exploit that affected vVISR staking contract. The hacker utilized Tornado Cash to disguise himself, Ethereum’s privacy tool used to obfuscate the transaction history on Ethereum Network. It is the same tool used by the SquidGame token scammers to get away with the funds and not leave any traces simultaneously. The hack primarily affected token holders and VISR stakers because the prices have constantly dropped ever since.
VISR to ETH in No Time
Most of the tokens that hackers acquired have already been traded using Uniswap for ETH. The hacker has also initiated channeling of funds via tornado cash, thus the identity of the culprit remains unknown. However, it has been estimated that the hacker will not end up with $8.2 million, but pretty less than that, as the token’s value keeps falling. The hacker successfully added 243 ETH into its wallet, estimating about $978,561. Another $135,000 is added to the wallet in the form of 0.475 ETH & 3.6 million VISR.
Statements From The Team
The developers of the Protocol expressed in a tweet that they do know about the VISR staking contract exploitation and they are planning a migration plan, also no positions are at risk, by saying, “We are aware of an exploit of the vVISR staking contract and are implementing a migration plan for affected VISR. No positions or hypervisors are at risk.” A comment to their own tweet said, “We will be restoring affected VISR stakers.”
The team will manage the migration to reimburse their users based on the data recorded in the screenshot captured ahead of the hack. Token migration is the most suitable way to overcome such DeFi hacks. This process gives the user a privilege to get the same amount of tokens based on the user’s actual holdings. In this migration, users will be able to redeem an amount equivalent to VISRs held by them.
Visor Finance & The DeFi Ecosystem
Visor, as it showcases itself, is a protocol for asset management in the DeFi ecosystem, being built on Uniswap V3, it aims to make a way to optimize returns for liquidity providers and projects. In July, the company gathered $3.5 million from many great industry players, including Spartan, DeFi Alliance, 1confirmation, and Digital Currency Group. Even though Visor constantly gained momentum ever since its launch, this year, it has been hacked several times, the most recent other than this, being in November, emerged from Uniswap V3 arbitrage.
Is DeFi Unsafe?
The scams and hacks in the DeFi ecosystem stay uncontrolled in the crypto industry this year. Grim Finance, too, faced an attack earlier in the month, with a hacker stealing $30 million worth of cryptocurrencies. Hackers somehow managed to access the project’s wallet via a smart contract’s malicious token. The largest of all, a DeFi hack occurred in August this year, with attackers compromising $600 million worth of different cryptocurrencies over the multiple platform networks such as Polygon, Ethereum, etc.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
