RocketSwap on Base Hacked and Taken Over

Following the LeetSwap incident, RocketSwap on Base has now fallen victim to a hack, with the extent of the damage still unknown.

Incident Details:

• Attack Confirmation: This morning (15/8), it was confirmed that the token swapping platform RocketSwap was hacked on Base. The hacker used a Brute Force method, generating valid passwords to gain control of the platform. The total extent of the financial damage is yet to be determined.
• Immediate Response: All RCKT tokens farmed/staked were hacked and swapped into WETH. Decentralized exchanges (DEX) remain unaffected. Upon discovering the attack, the RocketSwap team immediately shut down the platform to prevent further damage.

Emergency Plan:

The RocketSwap team has proposed an emergency response plan:

1. Deploy New Farming Contract: Remove the proxy contract and make the source code available on-chain.
2. Adjust Farming Rewards: The new farming contract will reduce rewards by 0.075 units per block.
3. Minting Rights: The project will relinquish minting rights, retaining only the allocation rights for new pools.
4. Liquidity Lock: Initial liquidity will be locked, and 80,000 tokens will be locked for an additional year.
5. Continue LaunchPad: The project will proceed with the LaunchPad and provide further updates.
6. Reopen Telegram Groups: Groups will be reopened once the situation stabilizes.
7. Negotiate with Hacker: Engage with the hacker to recover funds for victims of the attack.

Market Impact:

• RCKT Price Drop: The price of RCKT has plummeted, falling more than 55% in the past 24 hours.

Broader Context:

• BASE Popularity: BASE, a layer-2 network developed by Coinbase, has been a hot topic in the crypto market recently. During its testing phase, BASE attracted millions of users and formed significant partnerships, such as with Coca-Cola and other major projects for the Onchain Summer NFT commemorations.
• Challenges: Despite these achievements, BASE has faced numerous challenges, including the BALD memecoin rugpull, the collapse of the Frenstech (FRENS) memecoin, and the LeetSwap exploit, all of which have threatened its current standing.

The RocketSwap hack is another setback for Base, adding to the challenges the layer-2 network faces despite its recent successes and growing user base. The swift response and proposed emergency plan by the RocketSwap team aim to mitigate the damage and restore confidence among users.