CryptoChronicle: DEX Drama Unveiled

The Velodrome, positioned as the second-largest decentralized exchange (DEX) within the expansive Optimism network, and its counterpart, Aerodrome, reigning supreme as the leading DEX on the Base network, have recently found themselves navigating the complexities of compromises in their respective frontend systems.

In the aftermath of this unforeseen development, both platforms have taken to the virtual airwaves, utilizing their social media megaphones to gently implore their user base to exercise a temporary hiatus from interacting with their platforms.

Velodrome and Aerodrome Issue Cautions Amidst the Murmurs of Security Breaches

A posted missive soberly intones, "Our once pristine frontend now finds itself in a compromised state. We humbly beseech our valued users to steer clear of any dalliance with Velodrome during this delicate period. Our dedicated team, in pursuit of truth, is actively delving into the situation and shall illuminate the path forward through regular updates on this platform." A symphony of caution resonates as a comparable advisory melody emanates from Aerodrome's official X account.

Stay safe guys, I had weird transaction suggestions while connecting. I had to switch to optimism and increase unspecified allowance. Luckily I didn't fell for it.

— Sneaky.Pete. (@SneakyPeterr) November 29, 2023

In this unfolding saga, certain users have borne witness to peculiar transaction recommendations, raising the proverbial eyebrow upon syncing their digital wallets with these venerable exchanges.

The suspected catalyst behind this narrative twist is none other than a DNS attack, a cybernetic ballet where nefarious actors pirouette into control of a website, leading unsuspecting users through a clandestine pas de deux towards phishing sites. This digital tango, honed to perfection, targets a website's DNS protocol, the unsung maestro orchestrating the seamless connection of user requests with the corresponding IP address of the intended website.

Looks like stolen funds are going to these two addresses

0x02BA13f39D7df9C3F7592257b636eD6C7CC4ae78
0xf64fCEdFCe714Bbe835761e54D7067f2f8231443 pic.twitter.com/mm6SUhCLhq

— ZachXBT (@zachxbt) November 29, 2023

In the intricate choreography of this cyber danse macabre, attackers pirouette skillfully, leading users into a rhapsody of malevolent contracts designed to elegantly waltz away with funds, as vividly demonstrated in this unfolding drama.

Enter ZachXBT, the on-chain analyst, painting additional strokes on this canvas of chaos. He reveals the nefarious choreographers gracefully transferring the pilfered funds to specific wallets christened as 0x02BA and 0xf64f, a duet of digital miscreants boasting an estimated combined balance of approximately $68,000.

Velodrome and Aerodrome Extend a Reassuring Symphony on Protocol Fund Security

In a subsequent movement of this unfolding concerto, Velodrome and Aerodrome join hands, releasing a harmonious statement on X. In this sonnet of assurance, they affirm the impervious security of the Protocol's funds, assuring stakeholders that their contracts stand unscathed.

Protocol funds are safe, contracts are unaffected; please ensure you are accessing our decentralized frontend at https://t.co/1NdyRo2x1w and review any permissions granted in the last several hours. https://t.co/vYVv8Zlw5M

— Velodrome (@VelodromeFi) November 29, 2023

As the crescendo of reassurance echoes, they beseech users to embrace the decentralized frontend woven into the fabric of the update, cautioning against the siren call of the one beckoning from their official X account. Furthermore, users are encouraged to revisit the permissions granted within the preceding hours, a nuanced note in this symphony of caution.

Velodrome, a luminary on the OP Mainnet (formerly Optimism), graces the stage with a total value locked (TVL) exceeding $139 million, adorned with the jewels of substantial revenue. Meanwhile, Aerodrome claims its sovereign throne on Base, commanding a financial realm with funds surpassing $63 million.

The compromise of these venerable platforms casts a shadow over the decentralized finance sector, akin to an unexpected minor key disrupting the otherwise harmonious symphony of progress.

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