Solv Protocol Hacked for $2.5M
Solv Protocol just suffered a $2.5 million exploit due to a "double mint" bug in its BitcoinReserveOffering contract Solv hack. The attacker manipulated token minting via the onERC721Received callback, minting tokens twice in a single transaction - leading to inflation and losses.
The Solv Protocol exploit led to a loss of approximately $2.5 million due to a "double mint" bug in its BitcoinReserveOffering (BRO) contract. The attacker exploited a flaw in the minting process, repeatedly minting tokens within a single transaction. The attacker started with 135 BRO tokens and managed to inflate their holdings to approximately 567 million BRO tokens through 22 repeated minting actions. These inflated tokens were then exchanged for approximately 38 SolvBTC. Solv Protocol has pledged to fully cover the losses for all affected users, who number fewer than 10. The protocol has also offered the attacker a 10% bounty for the return of the stolen funds. The team is currently working with security firms Hypernative Labs, SlowMist, and CertiK to investigate the exploit and prevent future incidents. The exploit was made possible by a logic flaw in the minting flow related to the onERC721Received callback during NFT transfers. Solv Protocol, launched in 2021, aims to bridge the gap between NFTs and DeFi, allowing users to stake Bitcoin and earn rewards. They allow users to convert Bitcoin into SolvBTC. Solv Protocol has raised a total of $25 million in funding, with backing from investors including Binance Labs, Blockchain Capital, Laser Digital, and OKX Ventures. Solv Protocol's model hinges on Bitcoin deposits backing Solv Protocol BTC, enabling users to lend, borrow, or stake across interconnected blockchains. The platform holds a substantial on-chain Bitcoin reserve, reported to be around 24,226 BTC, valued at over $1.7 billion. Data from DefiLlama shows more than $508 million currently locked in SolvBTC-related products.
