Blockchain security firm SlowMist reports that hackers exploited a vulnerability in a 1inch smart contract, leading to losses of over $5 million. The DeFi aggregator’s older contracts were primarily affected, with minimal impact on regular users.
On March 6th, 1inch confirmed the breach, stating the flaw was discovered the previous day. They are now assisting affected users and working to prevent future incidents. Users utilizing the impacted contracts are advised to implement necessary updates immediately.
To enhance security, 1inch has launched a bug bounty program, offering rewards from $100 to $500,000 for identifying vulnerabilities. This highlights their dedication to a safer user experience.
Market Impact and Trading Volume
Despite the security incident, 1inch maintains a strong presence in the DeFi sector. In Q4 2024, it facilitated about 38.2% of the total trading volume among decentralized exchange aggregators. However, its market share decreased by 10% due to rising competition from platforms like Odos and CoWSwap.
Trading volume on 1inch surged by 104% compared to the prior quarter, totaling $1.09 trillion. Ethereum remains the primary blockchain for 1inch transactions, with Base and Arbitrum also contributing significantly.
Additional Information
For more details, consult the original report on X (formerly Twitter). This analysis by SlowMist emphasizes the ongoing challenges in DeFi and the crucial need for robust blockchain security measures.
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