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Decentralized exchange and liquidity provider DODO is in the headlines today after it is revealed to have been hacked a few hours earlier, an exploit that resulted in a loss of $2.1 million.
not sure if this is still vulnerable, be careful out there pic.twitter.com/boIvL1Mghi
— Luciano (@Luciano_vPEPO) March 8, 2021
According to the DODO update, some V2 Crowdpools were targeted, while all V1 and non-Crowdpool V2 pools were secure. The affected pools included WSZO, WCRES, ETHA and FUSI pools, while AC pool funds were completely recovered, said the liquidity supplier.
The DEX also announced that it is working closely with its security partners to recover missing assets, before adding that,
“As a precautionary measure, we have temporarily disabled the pool creation portal on DODO.”
Soon after news of the development broke out, several users on Twitter were able to suspect that the missing funds had already been laundered into privacy pools as that was the case for most of the DeFi exploits that had taken place over the course of the year.
DODO was released in August 2020 by Diane Dai, Radar Bear and an unnamed production team. The Protocol raised $600,000 in a seed round led by Framework Ventures, after which it raised an additional $5 million in private sales investment round led by Three Arrows Capital, Binance Labs, and Pantera Capital. The protocol also attracted interest from investors such as Coinbase Ventures, Galaxy Digital and Alameda Research.
A lot of people in the group came out in defence of the protocol after news of the exploit broke. For example, Jerry Zhou, Managing Partner at Puzzle Ventures, took Twitter to express his support for DODO’s development team.
“I can understand some investors and crowd pooling projects feel frustrated about DODO, but you should know the road is never smooth.”
According to Zhou, the team has made considerable strides in retrieving the missing funds.
DODO’s native DODO token increased by more than 96 percent on a single day on 18 February, after revealing that it will soon be introduced on the Binance Smart Chain (BSC). At press time, news of the hack has yet to completely affect the price of the coin, with DODO selling at $4.00, down slightly more than 2% in the last 24 hours.