Abracadabra

$SPELL #Abracadabra
- Magic Internet Money (MIM).
Minimum price = $0.0003
Maximum price = $.075
It is a cross-chain lending protocol that uses interest-bearing tokens as collateral to mint a stablecoin pegged to the US dollar - Magic Internet Money (MIM).

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SPELL and GMX Drop After $13 Million Hack

A daring attack on DeFi protocol Abracadabra saw $13 million disappear in a flash, raising concerns about smart contract security in the decentralized finance industry.

According to information from blockchain security firm PeckShield, a vulnerability in Abracadabra’s smart contract was exploited by hackers, leading to the withdrawal of approximately 6,262 ETH – equivalent to $13 million – from the protocol’s liquidity pools.

The attacker used a flash loan technique, a trading strategy typical of DeFi, to manipulate the liquidation process in Abracadabra’s “cauldrons” system. The stolen funds were then transferred from the Arbitrum network to Ethereum, making it difficult to trace.

Cryptocurrency researcher Weilin (William) Li’s preliminary analysis on X shows that the hacker liquidated the loan in a flash loan state, taking advantage of the lack of collateral. The complex process involves seven steps, in which the attacker borrows Magic Internet Money (MIM) – Abracadabra’s algorithmic stablecoin – and takes advantage of liquidation incentives to profit.

The hacker’s profit comes from the liquidation reward, as the attacker’s account must ultimately be solvent.

The incident also directly affected the GMX exchange. The platform uses a two-step transaction process with the participation of “keepers” to minimize front-running. However, the time between order creation and execution may have created a loophole for hackers to intervene. However, GMX representatives confirmed that GMX’s smart contract was not affected. The issue related to Abracadabra’s cauldrons is based on GMX V2’s GM pools.

#Coinbay #GMX #SPELL #Abracadabra

🚨 DeFi Hack Alert: $13M Drained from Abracadabra/Spell Protocol

Abracadabra/Spell was hacked, with 6,262 ETH (~$13M) stolen due to a vulnerability in the "Cauldrons" smart contract built on GMX V2. Hackers exploited a liquidation loophole using a flash loan strategy, simulating self-liquidation without real collateral. While GMX’s core contracts weren’t affected, the breach highlights serious risks in DeFi lending layers. Funds were later bridged from Arbitrum to Ethereum, making tracking harder.

#DeFi #Hack #Abracadabra

DeFi security incidents resurface, GMX urgently clarifies its position

Another security vulnerability has emerged in the DeFi space! Blockchain security firm PeckShield has revealed that the lending protocol Abracadabra/Spell's "Cauldron" smart contract has been attacked, resulting in the theft of 6,260 ETH (approximately 13 million USD).

It is worth noting that this incident has affected the well-known decentralized exchange GMX, as Abracadabra's contract is directly connected to GMX V2's liquidity pool.

The GMX team quickly issued a statement to clarify the distinction, stating that their contract is absolutely secure! They explained that the issue lies solely within Abracadabra's contract design and is unrelated to GMX's underlying protocol.

Currently, the Abracadabra team is working with external security experts to trace the source of the vulnerability. This is the second time this year that the protocol has been compromised; in January, its stablecoin MIM lost over 6.49 million USD due to a contract vulnerability.

Security researcher Weilin Li analyzed the attack process and revealed the "flash loan seven-hit combo" strategy used by the hacker. The attacker executed 7 operations in a single transaction, borrowing MIM stablecoins 5 times and rapidly accumulating debt.

Because the contract did not check the collateral ratio in real-time after each loan, the attacker's debt ratio quickly exceeded the safe threshold. Subsequently, the attacker invoked a malicious contract, triggering a liquidation against themselves within a brief window before the flash loan was repaid.

In simple terms, the attacker first borrowed MIM stablecoins to increase their debt, then triggered the liquidation mechanism while in the flash loan state, at which point the system could not detect the insufficient collateral. Even more shocking is that the contract's payment accounting function was executed only after all operations were completed, which provided the attacker with an opportunity!

This incident once again reminds us that to avoid similar arbitrage attacks, DeFi protocols must be strictly designed with real-time risk control logic. Furthermore, the security of smart contracts depends not only on the code itself but also on the reasonable setting of boundaries for financial behavior.

Will incidents like this affect your confidence in DeFi? How do you balance yield and security considerations in the use of DeFi protocols?

#DeFi安全 #GMX #Abracadabra #闪电贷攻击

LARGEST CRYPTO HACKS IN Q1 2025

#Bybit #Libra #MelaniaMeme #Infini #Phemex #Abracadabra #Ionic #zkLend #Zoth #1inch

Abracadabra's Magic Internet Money has been hit by a $13M flash loan attack

#Abracadabra 's #DeFi protocol has suffered a $13M hack. A vulnerability in its smart contracts enabled the attacker to drain approximately 6,262 $ETH , worth around $13M, from the liquidity pools. Abracadabra's cauldrons are smart contracts that facilitate on-chain lending and borrowing using #GMX liquidity pools. The exploit appears to have involved manipulating the liquidation process within the integration of Abracadabra’s cauldrons on GMX V2’s GM pools.

👉 theblock.co/post/348059/hacker-steals-13-million-in-abracadabras-magic-internet-money-seemingly-using-a-flash-loan-attack

$SPELL (Spell Token)


Last Price: $0.0010484

24h Change: -4.22%

About: SPELL powers the Abracadabra.money platform, offering interest-bearing crypto assets.

Strategy: Monitor the TVL (total value locked) on Abracadabra.money and the DeFi market trends.

Pro Tips: Be cautious about volatility in DeFi tokens and focus on the utility of SPELL in the ecosystem.

#SpellToken #DeFi #CryptoTips #Abracadabra