Azoundria: Created page with "{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/tlnprotocolcontractvulnerability.php}} {{Unattributed Sources}} TLN Protocol Logo/HomepageTLN Protocol is a decentralized lending market, with heavy incentives provided to those who provide liquidity to be staked in the protocol. On May 31st, the protocol smart contract suffered an attack with losses reported between $160k and $280k. A public mention of th..."

2024-09-17T19:46:45Z

Created page with "{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/tlnprotocolcontractvulnerability.php}} {{Unattributed Sources}} thumb|TLN Protocol Logo/HomepageTLN Protocol is a decentralized lending market, with heavy incentives provided to those who provide liquidity to be staked in the protocol. On May 31st, the protocol smart contract suffered an attack with losses reported between $160k and $280k. A public mention of th..."

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{{Imported Case Study With About|source=https://www.quadrigainitiative.com/casestudy/tlnprotocolcontractvulnerability.php}}
{{Unattributed Sources}}

[[File:Tlnprotocol.jpg|thumb|TLN Protocol Logo/Homepage]]TLN Protocol is a decentralized lending market, with heavy incentives provided to those who provide liquidity to be staked in the protocol. On May 31st, the protocol smart contract suffered an attack with losses reported between $160k and $280k. A public mention of the hack or any compensation plans by the protocol could not be located. Third parties have provided very limited analysis into the transaction or vulnerability itself.<ref name="website-14297" /><ref name="tlnprotocol-14298" /><ref name="liquiditytokenstwitter-14299" /><ref name="liquiditytokenstwitter-14300" /><ref name="vimeo-14301" /><ref name="slowmistteamtwitter-14302" /><ref name="slowmistteamtwitter-14303" /><ref name="bscscan-14304" /><ref name="bscscan-14305" /><ref name="phalconxyztwitter-14306" /><ref name="exvulsectwitter-14307" /><ref name="bscscan-14308" /><ref name="chainaegistwitter-14309" /><ref name="metatrustalerttwitter-14310" /><ref name="cyversalertstwitter-14311" /><ref name="slowmisthackedarchive-14249" /><ref name="vimeo-14312" />

== About TLN Protocol ==
"Maximise the benefit of your VOW / v$ Liquidity Tokens with TLN Decentralised Discount Voucher Borrowing Protocol"

"Decentralized Finance (DeFi) offers financial instruments without relying on intermediaries such as brokerages, exchanges, or banks by using smart contracts on a blockchain."

"In a world where everything comes with a price tag, we all understand the need for financial flexibility. With TLN, you are not reliant on a traditional credit rating to access funds. Instead your actions unlock, and grow, a unique ecosystem borrowing capacity. The more you contribute to the stability of the ecosystem by staking your idle liquidity tokens, or referring other liquidity providers who wish to stake their liquidity tokens, the more your borrowing capacity expands"

"Ever wish you could benefit from helping others? With TLN, you can! By referring friends, family, or anyone else to become a Liquidity Provider in our thriving ecosystem, you not only contribute to its growth, but also increase your own borrowing capacity. Every Liquidity Provider holds their assets under their own private key. There's nothing to sell to anyone, and no commission paid on funds received by TLN; because no funds are ever received by TLN. Your LP tokens are always locked to your wallet, and only your wallet."

"Say goodbye to the hassle of traditional loan applications. TLN offers a streamlined, interest free, decentralized borrowing process. Your borrowing capacity (measured in TLN tokens) allows you to access v$ ecosystem discount voucher loans whenever you need. You're attracting vital liquidity the ecosystem needs, so the ecosystem is at your service."

"Don't settle for less; get it all with TLN! v$ discount vouchers work at 1000's of Retailers, letting you save on what you really want. From essentials to luxuries, TLN gives you the power to live life on your own terms. You can sell v$ on Pancake."

"Retailers in the ecosystem use v$ discount vouchers to drive sales and retain customers. When v$ are used for purchases within the Vow ecosystem, a small part of each transaction (1.6%) is removed from circulation. Later, some of this removed supply is re-created programmatically and can be used for various purposes, including funding new v$ loans."

"Stake LP" "Lock your Pancake generated VOW / v$ Liquidity Pair (LP) tokens in the TLN Smart Contract for 367 days."

"Collect TLN" "Your borrowing capacity (measured in TLN tokens) begins at 48% of the value of your staked VOW / v$ LP tokens."

"Borrow v$" "To use your borrowing capacity simply burn TLN tokens 1:1 for v$ loans. You'll need to post 20% VOW as collateral."

"Redeem v$" "Use v$ to discount products and services at ecosystem retailers. Alternatively sell your v$ for market value."

== 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 ==
TLN Protocol on BNBChain was attacked, resulting in a loss of approximately $280,000.
{| class="wikitable"
|+Key Event Timeline - TLN Protocol Contract Vulnerability
!Date
!Event
!Description
|-
|April 28th, 2024 8:50:00 AM MDT
|Promotional Video
|TLN Protocol shares a promotional video with attendance at different conferences and music about changing the world.
|-
|May 27th, 2024 3:23:00 AM MDT
|Endgame Protomional Video
|TLN Protocol posts a promotional video, which discusses the very nature of reality and time with a dramatic movie trailer theme. This video also announces a conference they are planning to host in Vienna.
|-
|May 31st, 2024 2:37:14 AM MDT
|Blockchain Transaction
|The malicious blockchain transaction.
|-
|May 31st, 2024 3:34:00 AM MDT
|SlowMist Tweet Posted
|SlowMist posts about suspicious transactions which were found in the liquiditytokens project. Two links are provided to Binance Smart Chain addresses.
|-
|May 31st, 2024 4:00:00 AM MDT
|BlockSec Phalcon
|Post by BlockSec Phalcon on Twitter.
|-
|May 31st, 2024 4:28:00 AM MDT
|ChainAegis Analysis
|ChainAegis posts a more detailed breakdown of the malicious transaction.
|-
|June 4th, 2024 12:17:00 PM MDT
|SlowMist List Inclusion
|SlowMist includes the hack in a list of hacks over the past week.
|}

== 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 ==
"According to monitoring by the SlowMist security team, the TLN Protocol on BNBChain was attacked, resulting in a loss of approximately $280,000."

"The attacker was funded via @TornadoCash, resulting in a loss of approximately $160K."

The total amount lost has been estimated at $280,000 USD.

== Immediate Reactions ==
"According to monitoring by the SlowMist security team, the TLN Protocol on BNBChain was attacked, resulting in a loss of approximately $280,000."

"The attacker was funded via @TornadoCash, resulting in a loss of approximately $160K."

== 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 ==
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?

== Ongoing Developments ==
What parts of this case are still remaining to be concluded?
== 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:Regulators:End}}

== References ==
<references><ref name="website-14297">[https://website.tlnprotocol.com/en Tokenized Liquidity Notes] (Jun 17, 2024)</ref>

<ref name="tlnprotocol-14298">[https://www.tlnprotocol.com/app/team Team: TLN protocol] (Jun 17, 2024)</ref>

<ref name="liquiditytokenstwitter-14299">[https://twitter.com/liquiditytokens/status/1784596126076699007 @liquiditytokens Twitter] (Jun 17, 2024)</ref>

<ref name="liquiditytokenstwitter-14300">[https://twitter.com/liquiditytokens/status/1777369845996171620 @liquiditytokens Twitter] (Jun 17, 2024)</ref>

<ref name="vimeo-14301">[https://vimeo.com/940041555/e7fffa1310 TLN Overview Part 1] (Jun 17, 2024)</ref>

<ref name="slowmistteamtwitter-14302">[https://twitter.com/SlowMist_Team/status/1798056448066502931 @SlowMist_Team Twitter] (Jun 17, 2024)</ref>

<ref name="slowmistteamtwitter-14303">[https://twitter.com/SlowMist_Team/status/1796475220372709776 @SlowMist_Team Twitter] (Jun 17, 2024)</ref>

<ref name="bscscan-14304">[https://bscscan.com/address/0x85f82230883693f1bbff65be1f7663ee5f0aa5f8 Contract Address 0x85f82230883693f1bbff65be1f7663ee5f0aa5f8 | BscScan] (Jun 17, 2024)</ref>

<ref name="bscscan-14305">[https://bscscan.com/address/0x19b3f588bdc9a6f9ecb8255919b02f9adf053363 TlnSwap | Address 0x19b3f588bdc9a6f9ecb8255919b02f9adf053363 | BscScan] (Jun 17, 2024)</ref>

<ref name="phalconxyztwitter-14306">[https://twitter.com/Phalcon_xyz/status/1796481848387743959 @Phalcon_xyz Twitter] (Jun 17, 2024)</ref>

<ref name="exvulsectwitter-14307">[https://twitter.com/EXVULSEC/status/1796499069583724638 @EXVULSEC Twitter] (Jun 17, 2024)</ref>

<ref name="bscscan-14308">[https://bscscan.com/tx/0x1350cc72865420ba5d3c27234fd4665ad25c021b0a75ba03bc8340a1b1f98a45 BNB Smart Chain Transaction Hash (Txhash) Details | BscScan] (Jun 17, 2024)</ref>

<ref name="chainaegistwitter-14309">[https://twitter.com/ChainAegis/status/1796489042533761045 @ChainAegis Twitter] (Jun 17, 2024)</ref>

<ref name="metatrustalerttwitter-14310">[https://twitter.com/MetaTrustAlert/status/1796497769651450224 @MetaTrustAlert Twitter] (Jun 17, 2024)</ref>

<ref name="cyversalertstwitter-14311">[https://twitter.com/CyversAlerts/status/1796491698106753079 @CyversAlerts Twitter] (Jun 17, 2024)</ref>

<ref name="slowmisthackedarchive-14249">[https://web.archive.org/web/20240604181328/https://hacked.slowmist.io/ SlowMist Hacked - SlowMist Zone] (Jun 12, 2024)</ref>

<ref name="vimeo-14312">[https://vimeo.com/949843349 VOW UP24 EndGame Trailer on Vimeo] (Jun 17, 2024)</ref></references>

TLN Protocol Contract Vulnerability - Revision history