The security researcher recently found an imperfection in a Dutch auction smart contract that could have ended up with a loss of 109,000 ETH. The SushiSwap decentralized exchange has slightly ignored turning into the latest DeFi hack thanks to the help from a white hat hacker.
A security researcher from venture capital firm paradigm famously known on twitter as “samczsun” has ended up protecting SushiSwap and its MISO platform for a potential danger of as much as 109,000 ETH. In a blog post published on Aug. 17, the programmer explained how he started to learn about the smart contract code for the BitDAO token sale at SushiSwap’s token launchpad platform, MISO. “Just pulled off maybe the biggest Whitehat rescue ever. Story time soon” said samczsun.
On noticing it from a closer perspective he found a mistake in the MISO Dutch auction contract while on the other hand some of the other functions lacked access controls. “I didn’t really expect this to be a vulnerability though, since I didn’t expect the Sushi team to make such an obvious misstep.” After a more detailed investigation, the White hat realized a vulnerability that if exploited it could end up with all the crypto assets in the token auction contract being used by a useless actor. An attacker could use It again with same ETH again and again to batch various calls to the contract and “bid in the auction for free.”
Samczsun tested the weakness with an exploit before contacting colleagues Georgious Konstantopoulos and Dan Robinson to study it and further check the findings. He also learned that a hacker could steal the funds from the contract by initiating a refund by sending a higher amount of ETH than the auction hard cap. “Suddenly, my little vulnerability just got a lot bigger. I wasn’t dealing with a bug that would let you outbid other participants. I was looking at a 350-million-dollar bug.”
“Everyone knows paradigm has big UNI/Uniswap bags, but Sam from their team just helped save SushiSwap (an ostensible competitior) from a critical bug. This is the ethos of the space among the best actors.”