Design Flaws Highlighted in Recent Hack Expose Vulnerabilities of Base Network
The recent attack on the Grand Base DeFi, which resulted in the theft of over $2 million, highlights the overall lack of security in Layer 2 networks like Base. This incident exposes a serious flaw in the design of the Base network, despite its newly established ecosystem with cross-chain interoperability and asset transfer capabilities.
The hack was executed stealthily by gaining control of the private keys, leading to the dumping of mined GP tokens in the market. This caused significant slippage and a 99% drop in token price, severely impacting the stability of the protocol. The loss of over $2 million in this exploit emphasizes the need for stronger security measures and stricter limitations in the DeFi environment.
In response to the Grand Base hack, the project’s team promptly communicated via Telegram, urging everyone to implement additional security measures and emphasizing their commitment to addressing the breach. On-chain investigator ZachXBT, known for identifying suspicious transactions and scamming activities, acted as a whistle-blower by providing crucial information about transactions on the Base blockchain.
ZachXBT’s study revealed irregular transfers of substantial asset values, creating vulnerabilities that attackers exploit to penetrate the network. Additionally, there have been recent phishing scams on the Base network, resulting in over $2 million in losses within just 24 hours. ScamSniffer reported a victim losing $1.2 million in AERO tokens due to a phishing scam, while another person experienced fraudulent signing of an ERC20 permit, resulting in a loss of $846,610 worth of $DEGEN tokens.
The main vulnerability in the Base network lies in its design, providing attackers with maneuvering space. The intricate data transmission protocols that enable cross-blockchain interactions become additional attack surfaces for hackers seeking loopholes and coding errors in smart contracts. Moreover, flaws exist not only in the Base network but also at the design level of the Ethereum Virtual Machine (EVM), the runtime environment for smart contracts. Attackers can exploit the constraints and lack of built-in security functionality in the EVM to their advantage.
To ensure the security of the Base ecosystem, the development team must prioritize enhancing the network design to prevent future attacks and threats, making assets safer. A comprehensive security mechanism, including secure protocols and rigorous oversight by experienced auditing firms, is necessary to eliminate phishing scams and inherent weaknesses in the DeFi environment.
Tags: Hack