88MPH Project Exploited

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88MPH

88 MPH ran a decentralized lending platform, which enabled users to earn continual interest on their crypto-assets by lending them out. The platform was exploited for $100k.

It appears that the $100k was ultimately recovered through an oversight of the hacker.

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

About 88MPH

"88mph is a fixed-rate yield-generation protocol." "88mph is a fixed-rate yield-generation protocol on Ethereum that allows users to deposit assets, earn fixed-rate interests, and farm for MPH tokens." You can "lend your crypto assets at a fixed interest rate or buy some floating-rate bonds. By doing so, you earn upfront $MPH token and system rewards." "Earn fixed-rate interest on your crypto and MPH rewards." "[L]end your crypto assets at a fixed interest rate with infinite liquidity." "The first mainnet version was launched in April 2020." The team "started working on a new version of the protocol in June and did [their] first security audit at that time, with the help of an Aave grant."

"88mph protocol is controlled by the MPH community who have the power to shape the future of the protocol. the governance treasury receives the MPH tokens paid back by depositors when they withdraw their deposits. The MPH community can propose and vote on various proposals ranging from protocol parameter changes to smart ways of using the capital assets stored in the treasury for creating new incentives, capitalization, and at the end growth."

"On November 17, two vulnerabilities were discovered in the 88mph project, resulting in an exploit that accumulated to a $100K loss. Luckily, some funds were rescued in the Uniswap pool." "88mph was attacked by exploiting a business logic error in the DInterest smart contract." "[O]n November 18, an attacker used the vulnerability to obtain $100,000 in MPH tokens." "The hack results in maliciously minting approximately $100K worth of MPH tokens."

"Afterwards, 88mph discovered a vulnerability in MPHMinter, the MPH token minting contract, which could allow potential attackers to steal all ETH in the Uniswap fund pool." "With the help of the legendary whitehat, samczsun, the dev team exploited another bug in the MPHMinter contract to drain the Uniswap pool for rescuring existing funds and getting the hacked funds back."

"The DeFi fixed-rate generation agreement 88mph (MPH) disclosed the processing progress of "attackers exploiting the vulnerability to mint US$100,000 MPH tokens" and has completed testing the ETH airdrop user interface activities. Currently, liquidity providers can claim the website (88mph.app/claim-eth) Claim your own ETH. 88mph will redeploy MPH later and then distribute it."

"With the help of the well-known white hat samczsun, ETH has been withdrawn into the governance multi-signature, so all funds are safe. In addition, 88mph stated that because the attacker placed $100,000 in the LP pool (liquid capital pool), the funds have been transferred to the governance wallet, and they have decided to allocate these funds to generations including MPH and ETH. Coin holders."

"Deposits of USDC, UNI, yCRV and crvRenWSBTC are SAFE and weren’t affected by this issue. No action required there. If you want to withdraw, just ask me or Zefram by DM on Discord/TG some MPH to unlock your deposit, we’ll send them from the governance multisig."

The contract was soon "[a]udited by Quantstamp while the staking contracts were forked from Synthetix." "Despite the two initial bugs, MPH has rallied anyway."

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 - 88MPH Project Exploited

Date	Event	Description
November 17th, 2020	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

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 $100,000 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.