How much was lost in the PARALUNI hack?

The PARALUNI hack resulted in $1.7M in losses on March 13, 2022.

What attack technique was used in the PARALUNI exploit?

The PARALUNI exploit utilized Other. Understanding this attack vector is critical for smart contract auditors and developers building secure DeFi protocols.

How can developers prevent similar smart contract attacks?

Preventing smart contract hacks requires a combination of secure coding practices, thorough security audits, and understanding common attack vectors like reentrancy, oracle manipulation, and access control flaws. Smart Contract Hacking (SCH) provides hands-on training to help developers and auditors identify and prevent vulnerabilities before deployment.

PARALUNI Hack

TOTAL LOST $1.7M

Medium Mar 13, 2022 Other

Affected Chain 2022 Incident surface

Recovered - No recovery reported

All-Time Rank #715 By amount stolen

Protocol Type Dexs Target category

Incident Overview

The exploiter:

https://bscscan.com/address/0x94bc1d55…5fcf8f

The example transaction behind the exploit:

https://bscscan.com/tx/0x70f367b9…b7ad54

The hack is made possible due to a reentrancy bug (introduced by the use of a crafted token contract) in the depositByAddLiquidity() function, which somehow doubles the credits the hacker is able to claim. The result gains were swapped via PancakeSwap.

Stolen funds were bridged via cBridge and deposited into Tornado Cash mixer:

https://etherscan.io/address/0x94bc1d55…5fcf8f

Incident Report

Protocol / Project PARALUNI

Date of Incident March 13, 2022

Attack Technique Other

Classification Exchange (DEX)

Primary Source View Post-Mortem

Protocol Information

Protocol Type Dexs

Official Website paraluni.org/

Protocol Twitter/X @paraluni

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 PARALUNI'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

If you're auditing a protocol with similar architecture to PARALUNI, these are the critical security checks that could have prevented this incident (March 2022).

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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Sources & References

01
Source 1 https://twitter.com/peckshield/status/1502817503877074947

Threat Assessment

Severity Level

MEDIUM

Attack Vector Other
Root Cause Exchange (DEX)
Year 2022

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