EvoDeFi Bridge Hack

The EvoDefi Bridge minted assets without backing. This approach has lead to users losing possible upwards of $66 million in assets.

The EvoDeFi Bridge connects a plethora of blockchains such as Avalanche, BSC, Heco, Fantom, Gnosis, Moonriver, Ethereum and Oasis Emerald. The incident gained traction when twitter users noticed a gap between 83 million $USDT and 33 million USDC that were minted on the Oasis Emerald blockchain with only 10.6 million $USDT and $10.2 million USDC.

The gap was massive in these two assets. Other assets existed in the bridge that were overcollateralized in contrast.

EvoDefi offers a wide suite of DeFi products including DEX's. ValleySwap on the Oasis Emerald network. According to rugdoc the EvoDeFi team decided to mint unbacked USDT and deposit user funds into the anchor protocol in order to be able to offer high APRs on Valleswap. This strategy backfired with the downfall of the Terra Ecosystem.

The bridge had to be paused and questions regarding missing funds could not be addressed appropriately by the team.

EvoDeFi Bridge address:

https://bscscan.com/address/0x9983d8cd…396add