Polygon Vesting Contract QiDAO Exploited For $13 Million: Report

The Polygon vesting contract QiDAO got exploited for $13 million in various tokens as we are reading further in our latest blockchain news.

The Polygon-based DEFI protocol QiDAO fell victim to an exploit of the Superfluid vesting contract on Tuesday which resulted in a loss of $13 million. The Polygon vesting contract allows users to borrow stablecoins at 0% interest against their holdings. iDAO acknowledged the exploit via Twitter but the team stressed that the vesting contract was exploited via a vulnerability in Superfluid which is the framework of a smart contract on ETH that enables users to transfers assets on the chain rather than on QiDAo itself.

According to @QiDaoProtocol , the QI Vesting contract on Superfluid has been exploited.

1) After MistTrack analysis, the attacker’s address (0x157…090) has made a profit of more than 13 million US dollars, including QI, WETH, USDC, SDT, MOCA, STACK, sdam3CRV and MATIC.

— SlowMist (@SlowMist_Team) February 8, 2022

Superfluid raised $9 million in a seed round from a group of private investors as well as venture capital firms. While QiDAo insisted that the user funds are safe, analytics site Slowmist estimates that hackers managed to get away with $13 million in various tokens like WETH, USDC, SDT, QI, MOCA, MATIC, and STACK. The team at Superfluid noted that it was notified of a potential exploit of the QiDAO vesting contract which leverages superfluid code adding that it is now investing in the incident. The users are urged to exercise caution and to avoid interactions with superfluid smart contracts until furhter notice. After the incident, the price of the QiDAO governance token, Qi dropped by mroe than 70% from $1.24 to $0.18 before rebounding to $0.70 by press time.

Superfluid’s vesting contract for QI has been exploited.

User funds on QiDao contracts remain safe. The exploit is solely on Superfluid.

We will release an update when we know more.

— Qi Dao (@QiDaoProtocol) February 8, 2022

The exploit came a day after Polygon as a scaling protocol for creating ETH-compatible blockchains and it raised $450 million in a funding round that I sled by Sequoia Capital India. The native token MATIC is up by 6.6% over the day and changes hands at $1.90 per coingecko.

As recently reported, Venture capital firm Sequoia Capital led a financing round for Polygon and became the latest Silicon Valley company to invest in the Web3 space. According to reports, Polygon raised $450 million with Sequoia Capital leading the investment. Other companies involved in the fundraising include Alameda Research, Tiger Global, Softbank, Galaxy Digital but also individuals like Alexis Ohanian, Alan Howard, and Kevin O’Leary.

In the meantime, Polygon is looking to allocate $100 million to a dedicated ecosystem fund that aims to be used for supporting upcoming developments on the network while the rest of the capital will be geared towards the robust growth of the platform. The fundraising round came two weeks after Polygon hired Ryan Watt who was the head of Youtube Gaming, as the new CEO of the game studio called Polygon Studios.

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• Source: https://www.dcforecasts.com/blockchain-news/polygon-vesting-contract-qidao-exploited-for-13-million-report/