$4 400 000 USD

DECEMBER 2022

GLOBAL

RAYDIUM

DESCRIPTION OF EVENTS

"An avenue for the evolution of DeFi. Light-speed swaps. Next-level liquidity. Friction-less yield."

 

"Raydium is an automated market maker (AMM) built on the Solana blockchain which leverages a central limit order book to enable lightning-fast trades, shared liquidity and new features for earning yield."

 

"Other AMM DEXs and DeFi protocols are only able to access liquidity within their own pools and have no access to a central order book. Additionally, many platforms run on other blockchains, such as Ethereum, where transactions are slower and gas fees are higher. Raydium offers a few key advantages: Faster and cheaper: Raydium leverages the efficiency of the Solana blockchain to achieve transactions magnitudes faster than Ethereum and gas fees which are a fraction of the cost. A central order book for ecosystem-wide liquidity: Raydium provides on-chain liquidity to a central limit order book, meaning that Raydium allows access to 3rd party order flow and liquidity on the order book. Trading interface: For traders who want to be able to view TradingView charts, set limit orders and have more control over their trading."

 

"Raydium's swap feature allows two tokens to be exchanged quickly within liquidity pools, while the DEX UI also allows for more advanced trading features such as limit orders. These make for a better trading experience for users."

 

"Raydium, a Solana-based AMM, lost a total of ~$4.4M in fees from its liquidity pools."

 

"There seems to be a wallet is draining LP Pools from Raydium liquidity pools using admin wallet as a signer without having/burning LP tokens.

 

We withdrew protocol provided PRISM/USDC liquidity from Raydium

 

WITHDRAW YOUR PRISM/USDC LIQUIDITY FROM RAYDIUM"

 

"According to OtterSec, the incident appears to have been down to a compromised private key to the owner account of Raydium contracts.

 

Raydium suspect “a trojan attack and compromised private key for the pool owner account”.

 

The account had authority over certain functions of Raydium’s pools, allowing the attacker to drain accumulated trading/protocol fees via the withdraw_pnl instruction. The hacker also changed the SyncNeedTake parameter to increase expected fees and withdraw extra funds."

 

"The majority of funds were bridged to Ethereum, swapped to ETH and have been deposited into Tornado Cash. 100k SOL ($1.4M) remains in the attacker’s Solana address."

Raydium is an automated market maker (AMM) built on the Solana blockchain that enables fast trades, shared liquidity, and new yield-earning features. Unlike other decentralized exchanges (DEXs) that can only access liquidity within their own pools, Raydium leverages a central limit order book that provides ecosystem-wide liquidity. The platform is faster and cheaper than other DEXs since it runs on the efficient Solana blockchain, which allows for faster transactions at a lower gas cost. The DEX UI also allows for more advanced trading features such as limit orders, which enhance the trading experience for users. However, recently Raydium suffered a loss of around $4.4 million in fees from its liquidity pools, due to a compromised private key to the owner account of Raydium contracts. The attacker drained accumulated trading/protocol fees via the withdraw_pnl instruction and also changed the SyncNeedTake parameter to withdraw extra funds. Most of the stolen funds have been moved to Ethereum and deposited into Tornado Cash, while 100k SOL ($1.4M) remains in the attacker's Solana address.

Sources And Further Reading

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