Decentralized finance platform Zunami Protocol warns against purchasing zETH and UZD stablecoins following a recent attack on its “zStables” pools hosted on Curve Finance.
In a recent blow to the world of decentralized finance (DeFi), Zunami Protocol has issued a cautionary advisory, urging users to refrain from acquiring its Zunami Ether (zETH) and Zunami USD (UZD) stablecoins. The warning comes in the aftermath of a sophisticated attack that targeted the protocol’s “zStables” pools, which were hosted on the Curve Finance platform.
On August 13, Zunami Protocol took to its official X (Twitter) account to confirm the occurrence of an attack on its stablecoin pools. The protocol assured users that their collateral remained intact, emphasizing that a thorough investigation was already underway to identify and address the potential exploit.
Preliminary estimates provided by prominent blockchain security firm PeckShield indicate that the attack resulted in the loss of over $2.1 million from Zunami’s Curve Pool. The exploit appears to be linked to a price manipulation issue, according to PeckShield’s analysis.
About Zunami Protocol
Zunami Protocol is a yield farming aggregator, exclusively tailored for stablecoin staking. Notably, the protocol has solidified its presence through the establishment of the primary “zStables” pool on Curve, a leading decentralized exchange (DEX) on the Ethereum blockchain, facilitating seamless and secure stablecoin trading within the Ethereum ecosystem.
Spearheading its operations as a decentralized autonomous organization (DAO), Zunami Protocol has garnered substantial attention within the DeFi community by boldly asserting its commitment to delivering “the highest APY across the market.” Highlighting its achievements, the official platform showcases an impressive $5 million total value locked (TVL), reinforcing its stature as a formidable contender within the evolving DeFi landscape.
Core to its mission, Zunami Protocol empowers users to diversify their stablecoin portfolios while concurrently mitigating the risks associated with individual stablecoin volatility. At its heart, the cross-chain protocol presents a robust solution that empowers users to transcend the traditional confines of stablecoin investments, fostering resilience against potential value fluctuations.
Disclaimer: The information provided in this article is based on available sources up to the time of writing. Subsequent developments may impact the accuracy and details of the incident described above.