Decentralized finance (DeFi) protocol Gamma Strategies suffered an exploit resulting in the loss of around $3.4 million, according to security analysts.

The protocol has taken immediate action to prevent further losses. The team has disabled deposits to all public DeFi vaults while ensuring that withdrawals remain active for users needing to access their funds.

"Our vaults will continue to be managed normally for now, but deposits are currently shut down until we identify and mitigate the problem," the team said. 

Security firms PeckShield and BlockSec both told The Block the incident resulted in estimated losses of $3.4 million, with the hacker taking over 1500 ether. BlockSec’s analysis points to a critical vulnerability in the protocol's "accounting mechanism."

“The root cause stems from the inconsistency between the accounting mechanisms for depositing and withdrawing used by Gamma Strategies, which results in a discrepancy between the liquidity and the shares,” BlockSec founder Yajin Zhou told The Block. “Exploiting this, the attacker could withdraw an excessive amount of tokens.”

Gamma Strategies is a decentralized asset management protocol built on Ethereum and other blockchains. It allows users to deposit funds into pools called “hypervisors” and earn a return on their investment through active liquidity management and market-making strategies.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。