Value DeFi Fire Sale - Revision history

Azoundria at 23:49, 2 May 2023

2023-05-02T23:49:55Z

← Older revision		Revision as of 17:49, 2 May 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/valuedefifiresale.php}}		{{Imported Case Study 2\|source=https://www.quadrigainitiative.com/casestudy/valuedefifiresale.php}}
	{{Unattributed ~~Citations~~}}		{{Unattributed Sources}}

	[[File:Valuedefi.jpg\|thumb\|Value DeFi]]ValueDeFi had previous issues in August 2020, November 2020, and again 2 days prior.		[[File:Valuedefi.jpg\|thumb\|Value DeFi]]ValueDeFi had previous issues in August 2020, November 2020, and again 2 days prior.
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	They haven't yet proposed compensation for this latest attack.		They haven't yet proposed compensation for this latest attack.

	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.<ref name="youtube-802" /><ref name="thedefiant-803" /><ref name="rektnews-816" /><ref name="valuedefitwitter-810" /><ref name="valuedefimedium-811" /><ref name="shrimpyblog-817" /><ref name="rektnews-812" /><ref name="slowmistmedium-818" /><ref name="adrianhetman-1144" /><ref name="slowmisthacked-678" /><ref name="openblocksecgithub-2342" /><ref name="peckshieldmedium-1223" /><ref name="frankresearchertwitter-809" />
	<ref name="youtube-802" /><ref name="thedefiant-803" /><ref name="rektnews-816" /><ref name="valuedefitwitter-810" /><ref name="valuedefimedium-811" /><ref name="shrimpyblog-817" /><ref name="rektnews-812" /><ref name="slowmistmedium-818" /><ref name="adrianhetman-1144" /><ref name="slowmisthacked-678" /><ref name="openblocksecgithub-2342" /><ref name="peckshieldmedium-1223" /><ref name="frankresearchertwitter-809" />

	== About Value DeFi ==		== About Value DeFi ==
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	!Description		!Description
	\|-		\|-
	\|May 7th, 2021 ~~12:00:00 AM~~		\|May 7th, 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 ==
	== Prevention Policies ==
	Decentralized finance is extremely complicated, and these smart contracts function as immutable hot wallets.		Decentralized finance is extremely complicated, and these smart contracts function as immutable hot wallets.

	The only secure storage of funds is in an offline multi-signature wallet.		The only secure storage of funds is in an offline multi-signature wallet.
			== 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 ==
	<references><ref name="youtube-802">[https://www.youtube.com/watch?v=jDw_YWJvl1s Value.Defi Hacked For $15 million. Discussion, Funds Located & Psychological Advice For Recovery - YouTube] (May 15, 2021)</ref>		<references><ref name="youtube-802">[https://www.youtube.com/watch?v=jDw_YWJvl1s Value.Defi Hacked For $15 million. Discussion, Funds Located & Psychological Advice For Recovery - YouTube] (May 16, 2021)</ref>

	<ref name="thedefiant-803">[https://thedefiant.io/22-million-was-stolen-from-three-defi-platforms-last-weekend/ $22 Million Was Stolen From Three Defi Platforms Last Weekend - The Defiant - DeFi News] (May 22, 2021)</ref>		<ref name="thedefiant-803">[https://thedefiant.io/22-million-was-stolen-from-three-defi-platforms-last-weekend/ $22 Million Was Stolen From Three Defi Platforms Last Weekend - The Defiant - DeFi News] (May 23, 2021)</ref>

	<ref name="rektnews-816">[https://www.rekt.news/value-rekt3/ Rekt - Value DeFi - REKT 3] (May 22, 2021)</ref>		<ref name="rektnews-816">[https://www.rekt.news/value-rekt3/ Rekt - Value DeFi - REKT 3] (May 23, 2021)</ref>

	<ref name="valuedefitwitter-810">[https://twitter.com/value_defi/status/1395766476687122433 @value_defi Twitter] (May 22, 2021)</ref>		<ref name="valuedefitwitter-810">[https://twitter.com/value_defi/status/1395766476687122433 @value_defi Twitter] (May 23, 2021)</ref>

	<ref name="valuedefimedium-811">[https://medium.com/valuedefi/rebranding-and-expansion-28de1d2b40c3 Rebranding And Expansion] (May 22, 2021)</ref>		<ref name="valuedefimedium-811">[https://medium.com/valuedefi/rebranding-and-expansion-28de1d2b40c3 Rebranding And Expansion] (May 23, 2021)</ref>

	<ref name="shrimpyblog-817">[https://blog.shrimpy.io/blog/what-is-value-defi What Is Value DeFi?] (May 23, 2021)</ref>		<ref name="shrimpyblog-817">[https://blog.shrimpy.io/blog/what-is-value-defi What Is Value DeFi?] (May 24, 2021)</ref>

	<ref name="rektnews-812">[https://www.rekt.news/leaderboard/ Rekt - Leaderboard] (May 23, 2021)</ref>		<ref name="rektnews-812">[https://www.rekt.news/leaderboard/ Rekt - Leaderboard] (May 24, 2021)</ref>

	<ref name="slowmistmedium-818">[https://slowmist.medium.com/slowmist-value-defi-vswap-module-hack-analysis-64e8909ef6a2 Slowmist Value Defi Vswap Module Hack Analysis] (May 23, 2021)</ref>		<ref name="slowmistmedium-818">[https://slowmist.medium.com/slowmist-value-defi-vswap-module-hack-analysis-64e8909ef6a2 Slowmist Value Defi Vswap Module Hack Analysis] (May 24, 2021)</ref>

	<ref name="adrianhetman-1144">[https://www.adrianhetman.com/four-hacks-one-week/ Four Hacks, one week] (Jun 18, 2021)</ref>		<ref name="adrianhetman-1144">[https://www.adrianhetman.com/four-hacks-one-week/ Four Hacks, one week] (Jun 19, 2021)</ref>

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

	<ref name="peckshieldmedium-1223">[https://peckshield.medium.com/valuedefi-incident-incorrect-weighted-constant-product-invariant-calculation-1bbaa220a02b Valuedefi Incident Incorrect Weighted Constant Product Invariant Calculation] (Jul 2, 2021)</ref>		<ref name="peckshieldmedium-1223">[https://peckshield.medium.com/valuedefi-incident-incorrect-weighted-constant-product-invariant-calculation-1bbaa220a02b Valuedefi Incident Incorrect Weighted Constant Product Invariant Calculation] (Jul 3, 2021)</ref>

	<ref name="frankresearchertwitter-809">[https://twitter.com/FrankResearcher/status/1390905494844313602 @FrankResearcher Twitter] (May 22, 2021)</ref></references>		<ref name="frankresearchertwitter-809">[https://twitter.com/FrankResearcher/status/1390905494844313602 @FrankResearcher Twitter] (May 23, 2021)</ref></references>

Azoundria at 23:51, 18 February 2023

2023-02-18T23:51:41Z

← Older revision		Revision as of 17:51, 18 February 2023
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	{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/valuedefifiresale.php}}		{{Imported Case Study\|source=https://www.quadrigainitiative.com/casestudy/valuedefifiresale.php}}
			{{Unattributed Citations}}

	[[File:Valuedefi.jpg\|thumb\|Value DeFi]]ValueDeFi had previous issues in August 2020, November 2020, and again 2 days prior.		[[File:Valuedefi.jpg\|thumb\|Value DeFi]]ValueDeFi had previous issues in August 2020, November 2020, and again 2 days prior.
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	This is a global/international case not involving a specific country.		This is a global/international case not involving a specific country.
			<ref name="youtube-802" /><ref name="thedefiant-803" /><ref name="rektnews-816" /><ref name="valuedefitwitter-810" /><ref name="valuedefimedium-811" /><ref name="shrimpyblog-817" /><ref name="rektnews-812" /><ref name="slowmistmedium-818" /><ref name="adrianhetman-1144" /><ref name="slowmisthacked-678" /><ref name="openblocksecgithub-2342" /><ref name="peckshieldmedium-1223" /><ref name="frankresearchertwitter-809" />

	== About Value DeFi ==		== About Value DeFi ==
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	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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	\|-		\|-
	\|May 7th, 2021 12:00:00 AM		\|May 7th, 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 $11,000,000 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://www.youtube.com/watch?v=jDw_YWJvl1s Value.Defi Hacked For $15 million. Discussion, Funds Located & Psychological Advice For Recovery - YouTube] (May 15)		<references><ref name="youtube-802">[https://www.youtube.com/watch?v=jDw_YWJvl1s Value.Defi Hacked For $15 million. Discussion, Funds Located & Psychological Advice For Recovery - YouTube] (May 15, 2021)</ref>

	[https://thedefiant.io/22-million-was-stolen-from-three-defi-platforms-last-weekend/ $22 Million Was Stolen From Three Defi Platforms Last Weekend - The Defiant - DeFi News] (May 22)		<ref name="thedefiant-803">[https://thedefiant.io/22-million-was-stolen-from-three-defi-platforms-last-weekend/ $22 Million Was Stolen From Three Defi Platforms Last Weekend - The Defiant - DeFi News] (May 22, 2021)</ref>

	[https://www.rekt.news/value-rekt3/ Rekt - Value DeFi - REKT 3] (May 22)		<ref name="rektnews-816">[https://www.rekt.news/value-rekt3/ Rekt - Value DeFi - REKT 3] (May 22, 2021)</ref>

	[https://twitter.com/value_defi/status/1395766476687122433 @value_defi Twitter] (May 22)		<ref name="valuedefitwitter-810">[https://twitter.com/value_defi/status/1395766476687122433 @value_defi Twitter] (May 22, 2021)</ref>

	[https://medium.com/valuedefi/rebranding-and-expansion-28de1d2b40c3 Rebranding And Expansion] (May 22)		<ref name="valuedefimedium-811">[https://medium.com/valuedefi/rebranding-and-expansion-28de1d2b40c3 Rebranding And Expansion] (May 22, 2021)</ref>

	[https://blog.shrimpy.io/blog/what-is-value-defi What Is Value DeFi?] (May 23)		<ref name="shrimpyblog-817">[https://blog.shrimpy.io/blog/what-is-value-defi What Is Value DeFi?] (May 23, 2021)</ref>

	[https://www.rekt.news/leaderboard/ Rekt - Leaderboard] (May 23)		<ref name="rektnews-812">[https://www.rekt.news/leaderboard/ Rekt - Leaderboard] (May 23, 2021)</ref>

	[https://slowmist.medium.com/slowmist-value-defi-vswap-module-hack-analysis-64e8909ef6a2 Slowmist Value Defi Vswap Module Hack Analysis] (May 23)		<ref name="slowmistmedium-818">[https://slowmist.medium.com/slowmist-value-defi-vswap-module-hack-analysis-64e8909ef6a2 Slowmist Value Defi Vswap Module Hack Analysis] (May 23, 2021)</ref>

	[https://www.adrianhetman.com/four-hacks-one-week/ Four Hacks, one week] (Jun 18)		<ref name="adrianhetman-1144">[https://www.adrianhetman.com/four-hacks-one-week/ Four Hacks, one week] (Jun 18, 2021)</ref>

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

	[https://peckshield.medium.com/valuedefi-incident-incorrect-weighted-constant-product-invariant-calculation-1bbaa220a02b Valuedefi Incident Incorrect Weighted Constant Product Invariant Calculation] (Jul 2)		<ref name="peckshieldmedium-1223">[https://peckshield.medium.com/valuedefi-incident-incorrect-weighted-constant-product-invariant-calculation-1bbaa220a02b Valuedefi Incident Incorrect Weighted Constant Product Invariant Calculation] (Jul 2, 2021)</ref>

	[https://twitter.com/FrankResearcher/status/1390905494844313602 @FrankResearcher Twitter] (May 22)		<ref name="frankresearchertwitter-809">[https://twitter.com/FrankResearcher/status/1390905494844313602 @FrankResearcher Twitter] (May 22, 2021)</ref></references>

Azoundria: Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/valuedefifiresale.php}} Value DeFiValueDeFi had previous issues in August 2020, November 2020, and again 2 days prior. They haven't yet proposed compensation for this latest attack. This is a global/international case not involving a specific country. == About Value DeFi == "Before rebranding, the DeFi space knew Value DeFi as YFValue (YFV). The project was inspired..."

2023-01-26T05:46:49Z

Created page with "{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/valuedefifiresale.php}} thumb|Value DeFiValueDeFi had previous issues in August 2020, November 2020, and again 2 days prior. They haven't yet proposed compensation for this latest attack. This is a global/international case not involving a specific country. == About Value DeFi == "Before rebranding, the DeFi space knew Value DeFi as YFValue (YFV). The project was inspired..."

New page

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

[[File:Valuedefi.jpg|thumb|Value DeFi]]ValueDeFi had previous issues in August 2020, November 2020, and again 2 days prior.

They haven't yet proposed compensation for this latest attack.

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

== About Value DeFi ==
"Before rebranding, the DeFi space knew Value DeFi as YFValue (YFV). The project was inspired by the Yearn Finance protocol, a platform designed exclusively to cater to yield farmers."

"Value DeFi is a compilation of products and services for the decentralized finance sector that brings innovation and fairness to the community. This project’s main goals are to increase accessibility to yield farming, provide on-chain governance voting, reward stakeholders with flexible yield strategies, and protect user funds through insurance treasuries." "The Value DeFi suite contains five unique products and services."

"[T]he AMM called vSwap from @value_defi is in trouble." "vSwap is an automated market maker product created by Value DeFi that utilizes smart routing to provide the best rates possible for token swaps. Traders can swap tokens while experiencing low slippage rates and minimal price impact no matter what size they are trading."

"The attacker fisrtly swap 0.05 WBNB for vBSWAP token. [T]he attacker make a flashloan, so vSwap contract will transfer the vBSWAP token and WBNB to the attacker. Before completing the entire exchange process and updating the amount of tokens in the pool, different algorithms will be selected according to whether the tokenWeight0 parameter of the pool is 50 to check whether the amount of tokens in the pool meets expectations. Since the tokenWeight0 parameter of the vSwap contract is set to 70, the second algorithm will be used to check the amount of tokens in the pool. The key point of the vulnerability is that when the second algorithm is used for inspection, the inspection can be passed through specially constructed data."

"The second algorithm is checked by calling the ensureConstantValue function of the formula contract and passing in the amount of tokens cached in the pool and the amount of real-time tokens. After specific analysis and debugging of this algorithm, we can find that when using WBNB to exchange the smallest unit (ie 0.000000000000000001) vBSWAP, a huge fluctuation range is allowed between the WBNB value cached in the pool and the real-time value. This algorithm check within this range will pass. Therefore, the attacker can transfer to WBNB to exchange the smallest unit of vBSWAP tokens, and at the same time lend a large amount of WBNB tokens in the pool through flash loan."

"Due to algorithm problems, they can still pass vSwap check without repaying the flash loan. The attacker only needs to repeat this process continuously in all vSwap pools to steal the liquidity in the pool and complete the profit."

"About $11M was stolen today from non 50/50 pools, in addition to $6M already lost this week as a result of contract reinitialization."

"Value DeFi is a trainwreck." "Six months ago they lost $7M. Three days ago they lost $10M." "Now they’ve lost another $11M."

"The incident was due to the improper use of a complex exponentiation power() function behind the calculation and enforcement of the weighted constant product invariant."

"The very first part of our compensation is live. Please refresh the website to claim your missing tokens."

"Value DeFi is a prime example of how developers can survive in the blockchain industry even if they face several challenges and hardships throughout the production process. Despite the fact that it is not yet a serious competitor, it is still worth observing the project’s growth over the past year and its potential future."

"[T]he native token of Value DeFi has recovered somewhat since the latest exploit. However, Nansen shows us that the DEX volume has been decreasing consistently."

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 - Value DeFi Fire Sale
!Date
!Event
!Description
|-
|May 7th, 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 ==
Decentralized finance is extremely complicated, and these smart contracts function as immutable hot wallets.

The only secure storage of funds is in an offline multi-signature wallet.

== References ==
[https://www.youtube.com/watch?v=jDw_YWJvl1s Value.Defi Hacked For $15 million. Discussion, Funds Located & Psychological Advice For Recovery - YouTube] (May 15)

[https://thedefiant.io/22-million-was-stolen-from-three-defi-platforms-last-weekend/ $22 Million Was Stolen From Three Defi Platforms Last Weekend - The Defiant - DeFi News] (May 22)

[https://www.rekt.news/value-rekt3/ Rekt - Value DeFi - REKT 3] (May 22)

[https://twitter.com/value_defi/status/1395766476687122433 @value_defi Twitter] (May 22)

[https://medium.com/valuedefi/rebranding-and-expansion-28de1d2b40c3 Rebranding And Expansion] (May 22)

[https://blog.shrimpy.io/blog/what-is-value-defi What Is Value DeFi?] (May 23)

[https://www.rekt.news/leaderboard/ Rekt - Leaderboard] (May 23)

[https://slowmist.medium.com/slowmist-value-defi-vswap-module-hack-analysis-64e8909ef6a2 Slowmist Value Defi Vswap Module Hack Analysis] (May 23)

[https://www.adrianhetman.com/four-hacks-one-week/ Four Hacks, one week] (Jun 18)

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

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

[https://peckshield.medium.com/valuedefi-incident-incorrect-weighted-constant-product-invariant-calculation-1bbaa220a02b Valuedefi Incident Incorrect Weighted Constant Product Invariant Calculation] (Jul 2)

[https://twitter.com/FrankResearcher/status/1390905494844313602 @FrankResearcher Twitter] (May 22)