Decentralized finance (DeFi) protocols have been among the rapidly rising stars of the crypto world in recent years.
Aside from the rapid rise of DeFi, there are still problems with security measures. Sushi DEX asked its users to cancel contracts for security reasons.
Sushi Approval Agreement Abuse Occurs
Earlier today, Sushi developers disclosed that they had exploited a smart contract in the decentralized finance protocol. However, they directed users to cancel the contracts they had approved.
The exploit was specifically aimed at the ‘RouterProcessor2’ contract, which is used for trading routing on the SushiSwap exchange. They explained that a mistake in the SushiSwap RouterProcessor2 contract would result in a loss of $3.3 million.
After the contract exploit was discovered, SushiSwap lead developer Jared Gray asked users to revoke permissions for all contracts on SushiSwap as a safety precaution. He added that both teams are working with security teams to resolve the issue.
Sushi's RouteProcessor2 contract has an approval bug; please revoke approval ASAP. We're working with security teams to mitigate the issue. https://t.co/WhXJfa5xD4
— Jared Grey (@jaredgrey) April 9, 2023
DefiLlama developer 0xngmi explained that the exploit affected users who approved SushiSwap contracts in the last 4 days. This incident once again brought up the issue of security in the DeFi industry.
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