Silo Finance Hack

On June 25, 2025, Silo Finance lost approximately $545,000 due to an exploit in a testing-phase smart contract for an unreleased leverage feature. Core protocol contracts, including vaults and markets, remained unaffected, with only DAO-owned funds lost.

The attacker exploited a vulnerability in the openLeveragePosition function of an experimental smart contract deployed for testing. This function allowed user-controlled inputs, which the attacker manipulated to drain funds. The attacker funded their wallet through Tornado Cash and executed the exploit before the contract was paused.

Hypernative Labs detected the malicious code 3 minutes before execution, and Silo promptly responded by isolating the module, reassuring users that no external funds were at risk.