Era Lend Exploited, Resulting in $3.4 Million Loss

Era Lend, a lending platform on the zkSync Era ecosystem, has recently been exploited, resulting in an estimated loss of $3.4 million.

Details of the Exploit

Era Lend confirmed the security breach on their official Twitter account. Users are advised not to deposit any more USDC into the platform, and borrowing operations have been suspended to mitigate further losses.

Image: Era Lend Exploit Notification

Security Update:
"We've experienced a security incident on our platform today. The threat has been contained. We've suspended all borrowing operations for now and advise against depositing USDC. We're working with partners and cybersecurity firms to address this."

Cause and Method of the Exploit

Initial assessments indicate that the exploit was a Read Only ReEntrancy attack, manipulating the price oracle. Additionally, allowing LP tokens (specifically from SyncSwap) as collateral for loans contributed to the exploit.

Image: Price Oracle Issue Notification

PeckShield Inc. confirmed the issue and provided further details about the vulnerability:

"The team confirms a price oracle issue that is caused by a reentrancy with inconsistent swap pool state."

Era Lend, formerly known as Nexon Finance, is one of the earliest lending platforms developed on the zkSync Era ecosystem. PeckShield had previously audited this product.

Impact on Other Entities

Overnight Finance, an asset management unit on zkSync, was also affected. The project had deposited approximately 800,000 USDC as collateral and borrowed 524,000 USD.

Image: Overnight Finance Loss Calculation

According to Saul Capital, Overnight Finance's estimated loss is around 261,652 USD, accounting for about 7.86% of the total USD+ supply.

Loss Update

According to BlockSec, their team assisted in identifying the root cause, estimating the total loss to be around $3.4 million.

Image: BlockSec Assistance Notification

"We are assisting @Era_Lend to this issue, and the root cause has been identified. The total loss is ~$3.4M. Specifically, this is a read-only re-entrancy attack."