The Block10 minutes ago

Published on January 04, 2024 11:12 GMT+00:00edited on January 04, 2024 11:14 GMT+00:00

Decentralized finance (DeFi) protocol Gamma Strategies suffered an exploit resulting in the loss of around $3.4 million, according to security analysts.

The protocol has taken immediate action to prevent further losses. The team has disabled deposits to all public DeFi vaults while ensuring that withdrawals remain active for users needing to access their funds.

"Our vaults will continue to be managed normally for now, but deposits are currently shut down until we identify and mitigate the problem," the team said. 

Security firms PeckShield and BlockSec both told The Block the incident resulted in estimated losses of $3.4 million, with the hacker taking over 1500 ether. BlockSec’s analysis points to a critical vulnerability in the protocol's "accounting mechanism."

“The root cause …