DEFIBOX

DESCRIPTION OF EVENTS

"Defibox is a one-stop DeFi application platform. It is initiated and managed by the Defibox Foundation. The project was launched on EOS chain on July 21, 2020 and Swap protocol was launched on BSC chain on July 21, 2021. Defibox is committed to becoming the most popular DeFi application platform among users. Currently, Defibox has launched three protocols, namely Swap protocol, USN stable coin protocol and decentralized lending protocol."

"Insure the contract safety from multiple dimensions. Including security audit, multi-signature contract, bug-county program and code open source. Putting user capital security as first place."

"Swap is decentralized token swap and AMM (automatic market-making) protocol. The protocol was launched on EOS chain on July 21, 2020 and was launched on BSC chain on July 21, 2021. It provides swap prices in real time through the constant product algorithm, and users can also create swap markets and become market makers. Transaction fees are distributed to the market makers based on the proportion of liquidity."

"The Defibox Swap contract started its first security audit on July 19, and has been audited many times so far." "The Defibox Swap smart contract has passed the security audit of PeckShield and SlowMist."

"Defibox discovered an abnormal exchange situation of the EOS-EMOON trading pair at 22:00 on September 16th."

"This exchange abnormality is caused by the incompatibility between the Defibox Swap contract and the EMOON contract. Before the event, the number of pots was 482636464535179.88 EMOON/4866.1494 EOS. When the contract was suspended, the EMOON pot was 5790970803030.11 EMOON/3.4553EOS, resulting in about 4863 EOS. loss."

"The Swap error is caused by the Incompatibility of Defibox Swap contract and EMOON contract. The liquidity pool was 482636464535179.88 EMOON/4866.1494 EOS before the incident; When the contract was suspended, the EMOON liquidity became 5790970803030.11E MOON/3.4553 EOS, resulting a loss of 4863 EOS. At the moment, Defibox team has excluded the potential risk of burning token that might bring and upgraded Swap contract, improving contract safety level."

"Defibox has found a Swap error of EOS-EMOON on 22:00 September 16, 2021 (HKT)."

"After an emergency investigation, the swap contract was suspended at 0:00 on September 17th, and it was reopened on the morning of September 17th after auditing and multiple signings were completed." "With an emergency, Swap contract is suspended on 00:00 September 17, 2021 (HKT)."

"The Swap contract was open again on September 17 morning after completing audit and multi-signature."

"At present, the Defibox team has eliminated this type of risk caused by other burning tokens, and has upgraded the Swap contract to further improve the security of the contract."

"The Defibox Foundation will activate the risk reserve and pay 4863 EOS to the EMOON community." "Defibox Foundation apologize deeply for the loss caused to EMOON Community.Defibox Foundation will use risk reserve of 4863 EOS to compensate EMOON Community. For the details of compensation solution, Defibox will contact EMOON Community and let EMOON Community make the decision and announcement."

Defibox offers a wide range of blockchain services including a swap contract. Their twice-audited smart contract for swapping still had an exploit. The incident is not mentioned on their Twitter.

HOW COULD THIS HAVE BEEN PREVENTED?

In general, incidents like this can be expected when hot wallets are involved. Platforms should be prepared to fully cover the loss of funds in all hot wallets for users.

Check Our Framework For Safe Secure Exchange Platforms

blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub (Aug 11)
https://support.defibox.io/hc/en-us/articles/4406632860569-September-16-Incident-Explanation-For-EOS-EMOON-Swap-Error-and-Solution (Oct 2)
SlowMist Hacked - SlowMist Zone (Nov 8)
https://support.defibox.io/hc/en-us/articles/4403819583001 (Nov 13)
https://support.defibox.io/hc/en-us/articles/900002435546-SlowMist-Smart-Contract-Security-Audit-Report (Nov 13)
https://support.defibox.io/hc/en-us/articles/900002435486-PeckShield-Smart-Contract-Security-Audit-Report (Nov 13)
https://support.defibox.io/hc/en-us/articles/900002401663-Defibox-Swap-Smart-Contract-Security-Audit-Report (Nov 13)
Monthly DeFi Blood Bath Report #5 (Nov 13)

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