Denaria Hack

TOTAL LOST $165K
Low Other

Summarize with AI

ChatGPT Perplexity Claude Grok
Affected Chain 2026 Incident surface
Recovered - No recovery reported
All-Time Rank #1367 By amount stolen
Auditors 1 Prior security audit

Incident Overview

Quick Summary

On April 5, 2026, Denaria Finance, a perpetual DEX on Linea, lost $165K in a smart contract exploit. The platform immediately paused all user interfaces and is working with LineaBuild and auditors to investigate. They offered attackers a 15% bounty ($25,600) if the remaining $140K is returned within 48 hours.

Details of the Exploit

Denaria lost approximately 165,600 USDC in the attack. The platform runs as a fully on-chain automated market maker for perpetual trading and had recently integrated Chainlink Data Streams for BTC/USD pricing. Despite these measures, the exploit still succeeded. The exact technical details haven't been disclosed yet as the investigation is ongoing.

Once the breach was detected, the team acted quickly. They paused access to all user interfaces to prevent further damage. Users who had open trades or USDC in the vault at the time of the exploit will be refunded according to a procedure still being finalized. PWA users will be able to access funds stored in their smart accounts once the app reopens.

The team sent an on-chain message directly to the attacker offering roughly $25,600 (15% bounty) if the remaining $140K gets returned within 48 hours.

Incident Report

Protocol / Project Denaria
Date of Incident
Attack Technique Other
Classification Exchange (DEX)
Primary Source View Post-Mortem #1 View Post-Mortem #2

Protocol Information

Protocol Type Derivatives
Official Website denaria.finance/
Protocol Twitter/X @DenariaFinance
Team Anonymous
Source Code Unverified

What the Attacker Needed to Succeed

Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.

Technical Knowledge Deep understanding of other and Solidity and EVM internals
Capital Required Seed capital to cover gas and initial position setup
On-Chain Access Ability to interact with smart contracts and deploy a custom exploit contract
Protocol Analysis Identification of the exploitable vulnerability in Denaria's contract logic - root cause: exchange (dex)
Execution Speed Precise transaction ordering and timing to exploit the vulnerability within a single atomic block
Obfuscation Plan A strategy to launder and move stolen funds - typically through mixers, cross-chain bridges, or decentralized DEX swaps to resist tracing

What Auditors Should Check

Could this have been caught in audit? Likely — with a thorough Other audit checklist and test coverage
Audited by Audit Report 1 — still lost $165K. Prior audits don't guarantee safety, especially after post-audit code changes.

If you're auditing a protocol with similar architecture to Denaria, these are the critical security checks that could have prevented this incident (April 2026).

  • Verify all logic paths related to Other are guarded by proper access controls and input validation
  • Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs

Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.

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Security Audit History

Sources & References

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