Jul 2024 - Ethena Finance Discord Server Account Compromise - $Unknown (Global)
"ENABLING INTERNET MONEY_ Synthetic Dollar and Internet Native Yield"
"Ethena enables the creation and redemption of a delta-neutral synthetic dollar, USDe, crypto's first fully-backed, onchain, scalable, and censorship-resistant form of money.
The mechanism backing USDe enables the first "Internet Bond" offering a crypto-native, value-accruing, dollar-denominated instrument, derived from staked asset returns (to the extent utilized in backing) and the funding and basis spread available in perpetual and futures markets."
"USDe derives its relative peg stability from executing automated and programmatic delta-neutral hedges with respect to the underlying backing assets.
Hedging the price change risk of the backing asset in the same size minimizes fluctuations in the backing asset price as the change in value of the collateral asset is generally offset by the change in value of the hedge.
This enables the synthetic USD value of the collateral to remain relatively stable in most market conditions."
"Rewards live now Reward claims for $ENA have been enabled today. All holders of $USDe, $sUSDe, $ENA, and positions containing either token are eligible for retroactive rewards for their loyalty. Community members with no Ethena holdings are also free to claim."
"Ethena's USDe is not the same as a fiat stablecoin like USDC or USDT. USDe is a synthetic dollar, backed with crypto assets and corresponding short futures positions. This means that the risks implicated by interacting with USDe are inherently different. Please refer to our extensive Risks section for more information."
"Ethena is committed to transparency. It is crucial to highlight the risks associated with USDe, the actions taken to mitigate these risks, as well as plans to further manage and ameliorate these risks."
"PANews July 14th news that according to the link detective ZachXBT channel information, the Ethena Discord server has been hacked and no click links are allowed for now."
"It is entirely possible the @ethena_labs discord has been compromised. Do not click on links until the situation is resolved. (ht to the @zachxbt TG for first post I saw).
Sources associated with the project say one mod was compromised."
"I was very suspicious of these messages and tried to report a scam but it seems the discord is locked down as I’m not able to post any messages."
Further Analysis
Ethena offers a synthetic stablecoin which claims to be the first fully-backed, onchain, scalable, and censorship-resistant form of money. On July 14th, a post on the Discord promised rewards to the Ethena community, regardless of whether or not they held any Ethena. This was a fake offer, due to a compromised moderator account. The hack was pointed out by ZachXBT on Telegram, and eventually the Discord was recovered. It is not clear whether any funds were lose in the breach.
How Could This Have Been Prevented?
More Cryptocurrency Exchange Hacks/Scams/Frauds
Minterest Flash Loan Reentrancy Exploit > > < < Dough Finance ConnectorDeleverageParaswap Vulnerability
Sources/Further Reading
SlowMist Hacked - SlowMist Zone (Dec 31)
Ethena Discord服务器被攻击，暂时不要点击链接 - PANews (Dec 31)
Ethena (Dec 31)
@CampbellJAustin Twitter (Dec 31)
@NewsInSmol Twitter (Dec 31)
@parrot_coins Twitter (Dec 31)
@cryptocrim66608 Twitter (Dec 31)
@0xCryptoKingz Twitter (Dec 31)
@Gary_BingX Twitter (Dec 31)
@ben_tokimi Twitter (Dec 31)
@CampbellJAustin Twitter (Dec 31)
@daVinciBot1495 Twitter (Dec 31)
@Neome_com Twitter (Dec 31)
@0xDrifter Twitter (Dec 31)
ZachXBT: Ethena Discord server is down, do not click on the link (Dec 31)
USDe Overview | Ethena Labs (Dec 31)
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