Incident Overview
WOOFi Swap on Arbitrum experienced an exploit resulting in a loss of approximately $8.5 million. The exploit involved flash loans and price manipulation, prompting the team to pause the contract.
On March 5th, at 15:49 UTC, the sPMM algorithm controlling pricing on WOOFi Swaps was exploited on Arbitrum. The attacker utilized flash loans to manipulate prices by performing frequent token swaps. Specifically, the hacker exploited a flaw in the price calculation within the WooPPV2 contract, enabling them to manipulate prices during swaps.
Despite the swift containment of the threat within 13 minutes, the exploit led to significant financial losses.
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 WOOFi Swap, these are the critical security checks that could have prevented this incident (March 2024).
- Verify all logic paths related to Price Oracle Manipulation / Flash Loan Attack are guarded by proper access controls and input validation - see the Flash Loans Attacks 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 TrialSecurity Audit History
- Audit Report 1 Report
Related Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Proof-of-Concept Exploits
On-Chain Evidence & References
- Twitter/X Alert https://twitter.com/spreekaway/status/1765046559832764886
- Twitter/X Alert https://twitter.com/PeckShieldAlert/status/1765054155478175943
Sources & References
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