DeFi protocol Arcadia Finance hacked on Ethereum and Optimism for $455k

A hacker drained pipes roughly $455,000 from non-custodial decentralized finance (DeFi) procedure Arcadia Finance by exploiting a code vulnerability.Blockchain investigator PeckShield notified about the hack on Arcadia Finance, pointing out the cause as “the lack of untrusted input recognition.” The code supposedly lacked a recognition system to cross-check unverified inputs. This loophole permitted the hacker to drain funds worth approximately $455,000 from Ethereum (darcWETH) and Optimism (darcUSDC) vaults collectively.Arcadia Finance code needed no validation of untrusted input. Source: PeckShieldArcadia Finance has not yet responded to Cointelegraphs request for comment.Arcadia Finance confirmed the hack two hours after PeckShields intimation and subsequently paused the agreements to avoid more bleeding of funds. We understand a prospective make use of in our protocol. We have paused the contracts and are examining the root-cause with security experts as we speak. More info will follow as it comes readily available.– Arcadia Finance (@ArcadiaFi) July 10, 2023

While the examinations are underway, Arcadias code homes another vulnerability, which could prove disastrous for the protocol if made use of. According to PeckShield:” In addition, there is a lack of reentrancy defense, which permits for the instant liquidation to bypass the internal vault health check. The taken tokens– worth over $103,000 at the time of composing– on Ethereum stay parked at the suspected wallet address.Related: Multichain MPC bridge sees $100M+ outflows, stimulating fears of exploitIn Q2 of 2023, hacks and exploits in the crypto area resulted in a cumulative loss of over $300 million.A report by blockchain security company CertiK revealed that a total of 212 security events were tape-recorded in the quarter, resulting in a loss of $313,566,528 from Web3 protocols.When compared to the previous years Q2 information, CertiK discovered that the crypto hacks decreased by 58%.