CoW Swap Dex Hacked – All You Want To Know

A hacker stole over $180,000 price of cryptocurrency from the decentralized trade, CoW Swap, within the newest DeFi exploit. The attacker focused a wise contract in CoW Swap’s “solver competitors” and drained a settlement contract holding seven days’ price of protocol charges. The theft was confirmed by CoW Swap, however the staff assured that neither the protocol nor its customers suffered any loss. How precisely did the CoW Swap hack occur?

CoW Swap said that no cryptocurrencies have been stolen from the protocol or its customers and that the solver’s bond would cowl the damages, that means the protocol didn’t undergo any direct loss from the exploit.

“Final night time, a hacker exploited an exterior solver and used it to empty the settlement contract, which held 7 days price of protocol charges. Customers usually are not affected since we by no means maintain consumer funds (!) Neither Cow Swap is affected: The solver’s bond pays for all damages,” Tweeted CoW Swap on February 7.

Learn this thread for extra info on as we speak’s occasion 👉 https://t.co/biO6o7u0Zf

and this extra detailed put up mortem 👉 https://t.co/8wRqIJuWs5

— CoW Swap | Higher than the perfect costs (@CoWSwap) February 7, 2023

How the CoW Swap Occurred

The assault, which was detected by blockchain investigator MevRefund noticed the hacker exploit an exterior solver to empty the settlement contract containing the protocol charges, price roughly $180,000.

CoW Swap revealed that an exterior solver was utilized by the hacker to empty crypto out their settlement contract, which held seven days’ price of protocol expenses. Nansen’s blockchain evaluation agency calculated that roughly $180,000 had been stolen and positioned into two wallets with $123,000 DAI, $50,00 BNB, and an extra $7,400 ETH.

The block headline, “DEX aggregator CoW Swap falls sufferer to $180,000 hack”, nonetheless suggests customers funds have been misplaced.

Person funds have been by no means in danger. Any probability we are able to get this title revised @lawmaster @fintechfrank for improved accuracy???

— Rafa (@Grizzlyshort) February 7, 2023

CoW Swap engages in a “solver competitors” the place exterior events compete for the perfect execution route for his or her customers. The hacker entered the competitors ten days in the past and exploited the good contract, permitting for transfers from the settlement contract.

The attacker then triggered the DEX GPv2Settlement contract to switch DAI from the GPv2Settlement contract. CoW Swap said that the approvals for the unhealthy contract have been revoked.

Later within the day on February 7, CoW Swap despatched out an replace on the CoW Swap hack, saying, “The barter solver who acquired hacked as we speak already refunded the losses it precipitated, and that the subsequent steps have been for the CoW DAO “to determine on the slashing course of and to evaluate whether or not the Barter Solver will be re-added to the solver competitors.”

Replace on as we speak’s solver hack:

The barter solver who acquired hacked as we speak already refunded the losses it precipitated: https://t.co/nbLl45ZbIM

Subsequent steps for CoW DAO are to determine on the slashing course of and to evaluate whether or not the Barter Solver will be re-added to the solver competitors.

— CoW Swap | Higher than the perfect costs (@CoWSwap) February 7, 2023