Incident Overview
Many users noticed that the project token's rebasing function was always negative. As a result, they were losing tokens in which they had invested. The project also made use of the mint function, which was managed via an EOA wallet:
https://etherscan.io/tx/0x365a45f8…33e100
Another warning flag is a proxy contract. The owner sold a large number of tokens at this transaction:
https://etherscan.io/tx/0x16a0abbe…6e0e9f
After that, the team began to justify themselves on the project's Twitter account.
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 Xdef finance, these are the critical security checks that could have prevented this incident (January 2021).
- Verify all logic paths related to Rugpull 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 TrialSecurity Audit History
- Audit Report 1 Report
Sources & References
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01
Source 1 https://archive.ph/Pco4U
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02
de.fi Analysis https://t.me/defiyield_ann/380
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