As a seasoned researcher who has witnessed the rollercoaster ride of blockchain and DeFi development, I must admit that events like the BaseBros Fi rug pull leave me both saddened and frustrated. With years of experience under my belt, I have seen the incredible potential of decentralized finance to revolutionize financial systems, only to be repeatedly derailed by incidents such as these.
Unexpectedly, the Yield Optimization Decentralized Finance (DeFi) platform, BaseBros Fi, has seemingly vanished without a trace, leaving its users in disbelief. This platform, established on the Base blockchain, ceased to exist online as of Friday, September 13. It appears that users’ funds were taken due to an unchecked smart contract, which raises concerns about its safety and reliability.
On that particular day, BaseBros chose to remove all business-related accounts. These accounts encompassed their official website and social media presence on platforms like X and Telegram. Prior to their departure, BaseBros had amassed a significant following: approximately 2,000 followers on platform X and over 3,300 members on the Telegram platform.
After being initially spotted by blockchain security firm Chain Audits, who had previously reviewed some smart contracts for BaseBros, attention turned towards a move made by the DeFi project. According to Chain Audits, this action appears similar to common rug pulls, but it’s unfortunate that the specific contract involved in the questionable activity might not have been included in their previous audits.
BaseBros Rug Pull Could Have Been Avoided, Audit Firm Claims
According to the audit company, the BaseBros project employed a total of five smart contracts. Out of these, four had undergone an audit. Regrettably, it was the one smart contract that hadn’t been audited which the project team utilized to seize control and deplete the ecosystem funds.
The Chain Audit reports revealed that an unchecked contract had a hidden weakness, often referred to as a ‘backdoor.’ This flaw enabled the company’s management to move funds in and out of the ‘Strategy’ contract at their discretion.
It’s been suggested that the BaseBros incident might have affected the Seamless protocol as well. Yet, recent findings indicate that the Seamless protocol labeled its contracts in a way that is similar to what happened, which could potentially disprove these assumptions.
Investigator Cyvers has provided further insight into the BaseBros incident, stating that a malicious user was able to pilfer approximately $130,000 using the cryptocurrency tumbler, Tornado Cash.
Smoothly conducted an in-house inquiry regarding the matter. Afterward, they reassured their users that the system has not experienced any breaches or attacks, and that investors’ assets remain secure.
As a crypto investor, I can’t help but notice the surge in DeFi hacks that have been occurring at an alarming pace. Just last month, Euler Finance suffered a significant loss of around $195 million due to such an attack. More recently, Penpie Protocol has also fallen victim, with an attacker making off with approximately $27 million. This underscores the need for increased security measures and vigilance in this rapidly evolving space.
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2024-09-16 15:51