Incident Overview
Rodeo Finance, a Yield Protocol on Arbitrum, was exploited through an oracle issue causing a loss of 1,690,000 $USD.
Rodeo Finance was hit by an exploit resulting in a loss of approximately $880k stolen from the lending pool. Although the total impact was $1.7M, around $810k was recovered. The exploit occurred due to a sandwich attack on one of the oracles meant to be twap for Camelot's Uniswap v2 pools during its price update.
This led to an inflation in the price, which enabled the hacker to borrow from the lending pool and swap all to the said token. The hacker arbitraged the DEX pool back to its normal price. The remaining ~810k left in the Rodeo farm used for the attack was subsequently recovered.
Ethereum:
Attacker Address:
https://etherscan.io/address/0x2f3788f2…ace328
Staking Transaction:
https://etherscan.io/tx/0x114c6561…bc65db
TornadoCash Transfer Transaction:
https://etherscan.io/tx/0xadc1c04b…a2f603
Arbitrum:
Attacker Address:
https://arbiscan.io/address/0x2f3788f2…ace328
Malicious Transactions:
https://arbiscan.io/tx/0xdbcb3082…089ef1
https://arbiscan.io/tx/0xb1be5dee…9fb25a
https://arbiscan.io/tx/0x3942760f…c3de0b
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 Rodeo Finance, these are the critical security checks that could have prevented this incident (July 2023).
- Verify all logic paths related to Oracle Issue are guarded by proper access controls and input validation - see the Oracle Manipulation & Price Manipulation attack class for patterns
- Audit oracle price feeds for manipulation risks - ensure time-weighted average prices (TWAPs) or multi-source aggregators are used, not spot prices
- 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
$810K
Net Loss
880490
Related Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
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