Incident Overview
To connect the liquidity between ERC20 and BSC, RAI Finance has been using Chainswap to ensure the liquidity between both blockchains.
RAI Finance reserved 2.9M RAIs to an address 0x9D4D377c…5CcDe3, and this address automatically approves the spent access to the Chainswap’s bridge contract.
The Chainswap smart contract for RAI spend access has been exploited on Jul-03–2021 12:39:18 AM +UTC, from the contract address 0x0e128fb9…d51b84 which has access up to 2.9M RAIs in total at the account.
Incident Report
Protocol Information
Market Context at Time of Hack
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.
What Auditors Should Check
If you're auditing a protocol with similar architecture to RAI Finance, these are the critical security checks that could have prevented this incident (July 2021).
- 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.
Free TrialFunds Recovery
Recovered
$414K
Net Loss
0
Sources & References
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