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Here is a detailed look at the recent security breach.
On Sept 4, the Ethereum based platform @NotionalFinance experienced an exploit where approximately $1.72M was siphoned from their escrow contracts.
The individual responsible took advantage of the fCash pair minting process in Notional V2. They specifically manipulated the transaction pathway that moves from ERC1155Trade.safeTransferFrom into Portfolios.mintfCashPair().
By using several wallets under their command, the perpetrator established highly aggressive cross-maturity long and short fCash positions. The system's freeCollateral feature only assesses solvency on an individual account basis. Therefore, it was unable to restrict the attacker from isolating their risk across different accounts and maturities. This strategy successfully generated an enormous immediate credit for the attacker while leaving behind a massive deficit for the future.
You can view the full transaction record here:
https://etherscan.io/tx/0xe1589a19fe742f0d553889214abade69551fe944acffac014c28cc07b325d60a
Here is a detailed look at the recent security breach.
On Sept 4, the Ethereum based platform @NotionalFinance experienced an exploit where approximately $1.72M was siphoned from their escrow contracts.
The individual responsible took advantage of the fCash pair minting process in Notional V2. They specifically manipulated the transaction pathway that moves from ERC1155Trade.safeTransferFrom into Portfolios.mintfCashPair().
By using several wallets under their command, the perpetrator established highly aggressive cross-maturity long and short fCash positions. The system's freeCollateral feature only assesses solvency on an individual account basis. Therefore, it was unable to restrict the attacker from isolating their risk across different accounts and maturities. This strategy successfully generated an enormous immediate credit for the attacker while leaving behind a massive deficit for the future.
You can view the full transaction record here:
https://etherscan.io/tx/0xe1589a19fe742f0d553889214abade69551fe944acffac014c28cc07b325d60a
