PancakeSwap Cake Minted - Revision history

Azoundria at 23:47, 2 May 2023

2023-05-02T23:47:30Z

← Older revision		Revision as of 17:47, 2 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/pancakeswapcakeminted.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/pancakeswapcakeminted.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Pancakeswap.jpg\|thumb\|PancakeSwap]]Nothing is ever fully random, however a form of pseudorandom was used to determine the payout of CAKE bonuses.		[[File:Pancakeswap.jpg\|thumb\|PancakeSwap]]Nothing is ever fully random, however a form of pseudorandom was used to determine the payout of CAKE bonuses.
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	Unfortunately, this random could be exploited by a knowledgeable individual, since it was based on the block hash. The admins appear to have performed the minting themselves and burned the resulting tokens to prevent a hacker from doing so.		Unfortunately, this random could be exploited by a knowledgeable individual, since it was based on the block hash. The admins appear to have performed the minting themselves and burned the resulting tokens to prevent a hacker from doing so.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="slowmisthacked-678" /><ref name="bscdotnews-929" /><ref name="cryptopotato-930" /><ref name="cryptopwnagemedium-931" /><ref name="bscscan-932" /><ref name="openblocksecgithub-2342" />
	<ref name="slowmisthacked-678" /><ref name="bscdotnews-929" /><ref name="cryptopotato-930" /><ref name="cryptopwnagemedium-931" /><ref name="bscscan-932" /><ref name="openblocksecgithub-2342" />

	== About PancakeSwap ==		== About PancakeSwap ==
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	!Description		!Description
	\|-		\|-
	\|April 12th, 2021 ~~12:00:00 AM~~		\|April 12th, 2021
	\|Main Event		\|Main Event
	\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
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	\|		\|
	\|}		\|}

			== Technical Details ==
			This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?

	== Total Amount Lost ==		== Total Amount Lost ==
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	== Ongoing Developments ==		== Ongoing Developments ==
	What parts of this case are still remaining to be concluded?		What parts of this case are still remaining to be concluded?
			== General Prevention Policies ==
			This incident did not have a loss of any customer funds. Of course it could have been prevented if the payout was validated by human beings.
			== Individual Prevention Policies ==
			{{Prevention:Individuals:Placeholder}}

			{{Prevention:Individuals:End}}

			== Platform Prevention Policies ==
			{{Prevention:Platforms:Placeholder}}

			{{Prevention:Platforms:End}}

			== Regulatory Prevention Policies ==
			{{Prevention:Regulators:Placeholder}}

	== Prevention ~~Policies ==~~		{{Prevention:Regulators:End}}
	~~This incident did not have a loss of any customer funds. Of course it could have been prevented if the payout was validated by human beings.~~

	== References ==		== References ==
	<references><ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref>		<references><ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 18, 2021)</ref>

	<ref name="bscdotnews-929">[https://www.bsc.news/post/pancakeswap-defi-amm PancakeSwap Project Insight: A Dex AMM and Yield Farming Project] (May 23, 2021)</ref>		<ref name="bscdotnews-929">[https://www.bsc.news/post/pancakeswap-defi-amm PancakeSwap Project Insight: A Dex AMM and Yield Farming Project] (May 24, 2021)</ref>

	<ref name="cryptopotato-930">[https://cryptopotato.com/pancakeswap-lottery-hack-1-8-million-in-question/ PancakeSwap Lottery Hack: $1.8 Million in Question] (May 24, 2021)</ref>		<ref name="cryptopotato-930">[https://cryptopotato.com/pancakeswap-lottery-hack-1-8-million-in-question/ PancakeSwap Lottery Hack: $1.8 Million in Question] (May 25, 2021)</ref>

	<ref name="cryptopwnagemedium-931">[https://cryptopwnage.medium.com/1-800-000-was-stolen-from-binance-smart-chain-pancakeswap-lottery-pool-ca2afb415f9 $1,800,000 was Stolen from Binance Smart Chain PancakeSwap Lottery Pool] (May 23, 2021)</ref>		<ref name="cryptopwnagemedium-931">[https://cryptopwnage.medium.com/1-800-000-was-stolen-from-binance-smart-chain-pancakeswap-lottery-pool-ca2afb415f9 $1,800,000 was Stolen from Binance Smart Chain PancakeSwap Lottery Pool] (May 24, 2021)</ref>

	<ref name="bscscan-932">[https://bscscan.com/tx/0xd386fb7f2a8dc6c4776917b62a3074c78b07e746fedf7b3042d9e3bfc7fbeddd Binance Transaction Hash (Txhash) Details \| BscScan] (May 24, 2021)</ref>		<ref name="bscscan-932">[https://bscscan.com/tx/0xd386fb7f2a8dc6c4776917b62a3074c78b07e746fedf7b3042d9e3bfc7fbeddd Binance Transaction Hash (Txhash) Details \| BscScan] (May 25, 2021)</ref>

	<ref name="openblocksecgithub-2342">[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 10, 2021)</ref></references>		<ref name="openblocksecgithub-2342">[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 11, 2021)</ref></references>

Azoundria at 23:49, 18 February 2023

2023-02-18T23:49:25Z

← Older revision		Revision as of 17:49, 18 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/pancakeswapcakeminted.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/pancakeswapcakeminted.php}}
			{{Unattributed Citations}}

	[[File:Pancakeswap.jpg\|thumb\|PancakeSwap]]Nothing is ever fully random, however a form of pseudorandom was used to determine the payout of CAKE bonuses.		[[File:Pancakeswap.jpg\|thumb\|PancakeSwap]]Nothing is ever fully random, however a form of pseudorandom was used to determine the payout of CAKE bonuses.
Line 6:		Line 7:

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="slowmisthacked-678" /><ref name="bscdotnews-929" /><ref name="cryptopotato-930" /><ref name="cryptopwnagemedium-931" /><ref name="bscscan-932" /><ref name="openblocksecgithub-2342" />

	== About PancakeSwap ==		== About PancakeSwap ==
Line 43:		Line 45:

	Don't Include:		Don't Include:

	* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.		* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
	* Anything that wasn't reasonably knowable at the time of the event.		* Anything that wasn't reasonably knowable at the time of the event.
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	\|-		\|-
	\|April 12th, 2021 12:00:00 AM		\|April 12th, 2021 12:00:00 AM
	\|~~First~~ Event		\|Main Event
	\|~~This is an expanded~~ description of what happened and the impact. If multiple lines are necessary, add them here.		\|Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.
	\|-
	\|
	\|
	\|
	\|-		\|-
	\|		\|
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	== Total Amount Lost ==		== Total Amount Lost ==
	The total amount lost ~~is unknown~~.		The total amount lost has been estimated at $1,800,000 USD.

	How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?		How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?
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	== Total Amount Recovered ==		== Total Amount Recovered ==
	~~It is unknown how much was~~ recovered.		There do not appear to have been any funds recovered in this case.

	What funds were recovered? What funds were reimbursed for those affected users?		What funds were recovered? What funds were reimbursed for those affected users?
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	== References ==		== References ==
	[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)		<references><ref name="slowmisthacked-678">[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17, 2021)</ref>

	[https://www.bsc.news/post/pancakeswap-defi-amm PancakeSwap Project Insight: A Dex AMM and Yield Farming Project] (May 23)		<ref name="bscdotnews-929">[https://www.bsc.news/post/pancakeswap-defi-amm PancakeSwap Project Insight: A Dex AMM and Yield Farming Project] (May 23, 2021)</ref>

	[https://cryptopotato.com/pancakeswap-lottery-hack-1-8-million-in-question/ PancakeSwap Lottery Hack: $1.8 Million in Question] (May 24)		<ref name="cryptopotato-930">[https://cryptopotato.com/pancakeswap-lottery-hack-1-8-million-in-question/ PancakeSwap Lottery Hack: $1.8 Million in Question] (May 24, 2021)</ref>

	[https://cryptopwnage.medium.com/1-800-000-was-stolen-from-binance-smart-chain-pancakeswap-lottery-pool-ca2afb415f9 $1,800,000 was Stolen from Binance Smart Chain PancakeSwap Lottery Pool] (May 23)		<ref name="cryptopwnagemedium-931">[https://cryptopwnage.medium.com/1-800-000-was-stolen-from-binance-smart-chain-pancakeswap-lottery-pool-ca2afb415f9 $1,800,000 was Stolen from Binance Smart Chain PancakeSwap Lottery Pool] (May 23, 2021)</ref>

	[https://bscscan.com/tx/0xd386fb7f2a8dc6c4776917b62a3074c78b07e746fedf7b3042d9e3bfc7fbeddd Binance Transaction Hash (Txhash) Details \| BscScan] (May 24)		<ref name="bscscan-932">[https://bscscan.com/tx/0xd386fb7f2a8dc6c4776917b62a3074c78b07e746fedf7b3042d9e3bfc7fbeddd Binance Transaction Hash (Txhash) Details \| BscScan] (May 24, 2021)</ref>

	[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 10)		<ref name="openblocksecgithub-2342">[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 10, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/pancakeswapcakeminted.php}} PancakeSwapNothing is ever fully random, however a form of pseudorandom was used to determine the payout of CAKE bonuses. Unfortunately, this random could be exploited by a knowledgeable individual, since it was based on the block hash. The admins appear to have performed the minting themselves and burned the resulting tokens to prevent a..."

2023-01-26T05:37:47Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/pancakeswapcakeminted.php}} thumb|PancakeSwapNothing is ever fully random, however a form of pseudorandom was used to determine the payout of CAKE bonuses. Unfortunately, this random could be exploited by a knowledgeable individual, since it was based on the block hash. The admins appear to have performed the minting themselves and burned the resulting tokens to prevent a..."

New page

{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/pancakeswapcakeminted.php}}

[[File:Pancakeswap.jpg|thumb|PancakeSwap]]Nothing is ever fully random, however a form of pseudorandom was used to determine the payout of CAKE bonuses.

Unfortunately, this random could be exploited by a knowledgeable individual, since it was based on the block hash. The admins appear to have performed the minting themselves and burned the resulting tokens to prevent a hacker from doing so.

This is a global/international case not involving a specific country.

== About PancakeSwap ==
"PancakeSwap is a decentralized exchange (DEX) on the Binance Smart Chain (BSC), which uses permission less liquidity pools run by algorithms. This creates what is known as an automated market maker (AMM)."

"PancakeSwap has its own native BEP-20 token, CAKE, which can be staked or spread across Syrup Pools. Syrup pools provide tokens from other BSC projects such as Injective Labs (INJ) and CertiK (CTK), to name a couple."

"As previously mentioned, PancakeSwap runs on BSC, using BEP-20 tokens. BSC has much lower fees than Ethereum, with fees ranging anywhere from $0.04- $0.20 and transaction taking about five seconds on BSC."

"It is very important to to note that CAKE has an unlimited total suppy, and at the time of writing is still a positive emissions rate. At this point in time CAKE is still an inflationary token but its team is working to introduce new deflationary measures on top of its lottery system."

"According to sources, since April 12, 2021, a person who has access to Binance Smart Chain account 0x35f16a46d3cf19010d28578a8b02dfa3cb4095a1 (PancakeSwap administrator account) has stolen 59,765 Cakes (approximately US$1,800,000) from the PancakeSwap lottery pool. After hackers exploited the vulnerability several times, PancakeSwap banned the account."

"He used the exploit a few times. Shortly after the last theft the lottery game was suspended, and this account was banned by PancakeSwap. It gives a clear thought that PancakeSwap has been aware of the theft at that moment."

"While it’s true that the admin account did make use of the exploit and drain the funds, the author has a misconception: this was no foul play, and the funds weren’t stolen. While there has been no official statement from the PancakeSwap team on the matter, this event was clearly a white hat removal of funds from the contract, preventing a malicious actor from figuring out the bug and exploiting it."

"This is evident, first of all, from the fact that the PancakeSwap admins used their public known address to carry out the exploit. If they wished to drain the funds maliciously, they would have used an anonymous account. Secondly, the funds recovered from the lottery pool are being burned in batches by the admin address."

"While an exploit is scary and never a good sign, the handling of this by the team instills some confidence, proving that PancakeSwap is willing to fix issues when necessary (even though they could have trivially taken the morally reprehensible path by stealing user funds)."

"To make jackpot numbers genuinely random, drawing transaction should meet two criteria. First: it should be at least a few blocks away from enterDrawingPhase transaction in order to prevent exploit of known block hash. Block distance check should be performed inside of drawing method as a requirement. Second: drawing transaction should be performed in predefined time (e.g. 02:05:00 PM), or in a predefined time interval after enterDrawingPhase method (e.g. 05:00 minutes). If the second criterion is not met, there is another opportunity to exploit: admin might manipulate jackpot numbers waiting for the “right” block to inject drawing transaction."

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

* Known history of when and how the service was started.
* What problems does the company or service claim to solve?
* What marketing materials were used by the firm or business?
* Audits performed, and excerpts that may have been included.
* Business registration documents shown (fake or legitimate).
* How were people recruited to participate?
* Public warnings and announcements prior to the event.

Don't Include:

* Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
* Anything that wasn't reasonably knowable at the time of the event.
There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

== The Reality ==
This sections is included if a case involved deception or information that was unknown at the time. Examples include:

* When the service was actually started (if different than the "official story").
* Who actually ran a service and their own personal history.
* How the service was structured behind the scenes. (For example, there was no "trading bot".)
* Details of what audits reported and how vulnerabilities were missed during auditing.

== What Happened ==
The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.
{| class="wikitable"
|+Key Event Timeline - PancakeSwap Cake Minted
!Date
!Event
!Description
|-
|April 12th, 2021 12:00:00 AM
|First Event
|This is an expanded description of what happened and the impact. If multiple lines are necessary, add them here.
|-
|
|
|
|-
|
|
|
|}

== Total Amount Lost ==
The total amount lost is unknown.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

== Immediate Reactions ==
How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

== Ultimate Outcome ==
What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

== Total Amount Recovered ==
It is unknown how much was recovered.

What funds were recovered? What funds were reimbursed for those affected users?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?

== Prevention Policies ==
This incident did not have a loss of any customer funds. Of course it could have been prevented if the payout was validated by human beings.

== References ==
[https://hacked.slowmist.io/en/?c=ETH%20DApp SlowMist Hacked - SlowMist Zone] (May 17)

[https://www.bsc.news/post/pancakeswap-defi-amm PancakeSwap Project Insight: A Dex AMM and Yield Farming Project] (May 23)

[https://cryptopotato.com/pancakeswap-lottery-hack-1-8-million-in-question/ PancakeSwap Lottery Hack: $1.8 Million in Question] (May 24)

[https://cryptopwnage.medium.com/1-800-000-was-stolen-from-binance-smart-chain-pancakeswap-lottery-pool-ca2afb415f9 $1,800,000 was Stolen from Binance Smart Chain PancakeSwap Lottery Pool] (May 23)

[https://bscscan.com/tx/0xd386fb7f2a8dc6c4776917b62a3074c78b07e746fedf7b3042d9e3bfc7fbeddd Binance Transaction Hash (Txhash) Details | BscScan] (May 24)

[https://github.com/openblocksec/blocksec-incidents/blob/main/defi/2021.md blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub] (Aug 10)