Incident Overview
Sovryn Protocol's RBTC and USDT lending pools have been exploited by price manipulation. The attacker profited for 1,078,000 $USDT worth of assets as $RBTC and $USDT.
Sovryn is the protocol that provides trading and lending opportunities on the Layer 2 Bitcoin-based RSK chain. The protocol's $RBTC and $USDT lending pools were exploited and the attacker took away 44,93 $RBTC and 211,045 $USDT. The attacker exploited price calculation logic to withdraw more $RBTC than usual.
Devs managed to recover roughly half of the stolen assets through a combined effort at the moment.
Attacker address:
https://explorer.rsk.co/address/0xc92ebecd…97531a
Malicious contract:
https://blockscout.com/rsk/mainnet/address/0xA893cdcb…96b0A6
Malicious transaction example:
https://explorer.rsk.co/tx/0xf5ea6266…1582e2
Incident Report
Protocol Information
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 Sovryn, these are the critical security checks that could have prevented this incident (October 2022).
- Verify all logic paths related to Flashloan Reentrancy Attack / Other are guarded by proper access controls and input validation - see the Flash Loans Attacks attack class for patterns
- Check that all state-changing functions follow the Checks-Effects-Interactions (CEI) pattern to prevent reentrancy and logic ordering bugs
- 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
$539K
Net Loss
561000
Related Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
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