Ethereum liquidity provider, XCarnival, successfully saved its investors by cutting a deal with the hacker!
XCarnival is an Ethereum liquidity provider and an NFT lending pool that enabled NFT buyers to deposit their assets in exchange for liquidity.
The platform recently lost approximately US$4 million after a hacker exploited a flaw in its smart contract functionality.
XCarnival generally uses smart contracts to manage lending restrictions, and fund asset storage, and most importantly, these contracts act as an NFT manager.
Any shortcoming in these smart contracts would eventually cause massive amounts of damage to the assets that the platform stores to lend favors.
The hacker technically stole 3,087 ETH tokens from this exploit, but the bounty deal made by the company’s executives with the hacker reached the headlines!
Blockchain security and analytics company, PeckShield, reported the hack, along with the fact that the withdrawn pledged NFTs were planned to be used as collateral.
Which the hacker would have exploited to drain all the stored assets from the pool. But to save the customers from an imminent financial loss,
The company decided on suspending the smart contract altogether and offered a bounty of 1,500 ETH tokens to the hacker for returning the stolen funds.
XCarnival also assured me they would not pursue any legal action against the hacker!
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