Abandoned Swerve Finance sees potential governance attack on $1.3 million TVL
Quick Take
- Around $1.3 million in tokens locked in the abandoned swapping protocol Swerve Finance may be at risk.
- Twitter user Spreekaway highlighted a likely governance attack in reference to a suspicious transaction sent to the platform’s smart contract this Thursday morning.
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The tokens locked in the abandoned Swerve Finance swapping protocol’s smart contract may be at risk.
The attack, according to a warning from crypto Twitter user Spreek, stems from a suspicious transaction sent today. The attack could potentially drain a pool of $1.3 million locked on Swerve, on-chain data show.
Before the vote has a chance to pass, any users who wish to move their funds off the platform may interface directly with the smart contract on Etherscan, via proxy, using the “remove_liquidity” function. This is the only way to interact with the protocol as Swerve's front-end website remains down.
The potential exploiter initiated the scheme with a transaction sent Thursday in which the function to call a new vote was introduced, which Spreek indicated may be an attempt to execute an attack on Swerve’s governance protocol.
The Swerve team did not immediately respond to a request for comment.
Swerve was first launched by an anonymous developer in Sept. 2020, as a fork of the Curve protocol, and quickly saw success, at one point seeing as much as $415 million in value locked on the platform.
However, Swerve's success was to be relatively short-lived. The project’s front-end website went down after an anonymous actor registered the original domain of the protocol in late Sept. 2021.
This event triggered a swift drop in total value locked on Swerve, according to DefiLlama data.
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