OSN Liquidity Reward Vulnerability

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Visualization From ChainAegis

A protocol without any website or social media which could be found has been exploited. Named OSN, the protocol was reportedly offering tokens as a reward for providing liquidity. This enabled an attack where multiple contracts were deployed to add liquidity and gain all of the available rewards.

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

About OSN

"OSN on BNBChain is suspected to have been attacked. The attacker initiated multiple attack transactions, resulting in a loss of ~$110K. The attacker took advantage of the OSNLpDividendTracker contract which sells its own tokens as a reward for users adding liquidity."

"According to Foresight News, SlowMist, a cybersecurity company, has issued a warning about potential suspicious activity related to OSN tokens on the BNB Chain. Users are advised to remain vigilant. Further details about the nature of the suspicious activity were not provided."

"In OSN token's _transfer function, when transfer to address is the liquidity pool, it uses the swapAndSendDividends function to sell its own tokens and sends the BUSD to the OSNLpDividendTracker."

"The attacker repeatedly bought and sold OSN tokens, causing the OSNLpDividendTracker contract to accumulate a large amount of rewards."

"As the OSNLpDividendTracker contract primarily distributes rewards to addresses that provide liquidity, the attacker used multiple attack contracts to add liquidity and gain the rewards from the OSNLpDividendTracker contract."

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.

Key Event Timeline - OSN Liquidity Reward Vulnerability

Date	Event	Description
May 5th, 2024 9:21:07 PM MDT	Referenced Transaction	The specific transaction which is referenced by CertiK.
May 5th, 2024 9:36:30 PM MDT	Referenced Transaction	The specific transaction which is referenced by ChainAegis.
May 5th, 2024 9:56:00 PM MDT	SlowMist Tweet	SlowMist shares a tweet reporting the suspicious activity.
May 5th, 2024 10:04:14 PM MDT	Binance Square Article	Binance Square reports on SlowMist reporting the supicious activity.
May 6th, 2024 1:09:00 AM MDT	ChainAegis Analysis	ChainAegis performs a blockchain analysis and provides a visual of the exploit.
May 6th, 2024 3:15:00 AM MDT	CertiK Alert Posted	A CertiK alert was posted which goes into a technical analysis of the exploit.

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

The total amount lost has been estimated at $110,000 USD.

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

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

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

No specific policies for individual prevention have yet been identified in this case.

For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.

Platform Prevention Policies

Policies for platforms to take to prevent this situation have not yet been selected in this case.

For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.

Regulatory Prevention Policies

No specific regulatory policies have yet been identified in this case.

For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.