CoinGecko, a crypto data aggregator, revealed a staggering drop in Zunami Protocol’s stablecoin, $UZD, following an alleged price manipulation attack. The decentralized finance platform has reportedly lost over $2.1 million, causing the price of Zunami USD to plummet by 99.1% to $0.009.
Zunami Protocol, a prominent DeFi platform, recently encountered a significant breach. As a result, the protocol has urged its users to refrain from purchasing any of its Zunami Ether (zETH) or Zunami USD (UZD) stablecoins. This advisory came after an attack on its “zStables” pools on Curve Finance was detected.
The platform confirmed the assault on its stablecoin pools, assuring users that the collateral was intact as they conducted a comprehensive investigation into the potential exploit. The breach has primarily impacted the Zunami USD stablecoin and Zunami Ether.
Blockchain security behemoth PeckShield quickly detected the attack, estimating a theft of over $2.1 million from Zunami’s Curve Pool. The analysis suggested that the root cause was a price manipulation issue. This sentiment was echoed by Ironblocks, another blockchain security firm, which concurred with PeckShield’s estimates.
The severity of the situation is evident in the decline of the Zunami USD (UZD) price. During press, the price stands at $0.01006428, reflecting a 98.99% drop in the last 24 hours and a 99.01% decrease over the past week, per CoinGecko data. The exact market cap of Zunami USD remains undetermined as there is no clarity on the circulating supply of UZD tokens.
This incident underlines the vulnerabilities associated with the rapidly expanding DeFi sector. It is a reminder of the challenges platforms face in ensuring security and trustworthiness. As the crypto world awaits more details on the Zunami Protocol breach, it is evident that robust security mechanisms and constant vigilance are of paramount importance in this ever-evolving landscape.
