Key points
- The Ethena frontend breach has posed a significant risk to users.
- The protocol’s USDe token is backed by crypto assets and futures.
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Ethena, a synthetic dollar protocol built on Ethereum, has suffered an attack on its interface, prompting warnings for users to avoid interacting with its user interface or links. News of the attack was first shared based on a search conducted by Ethereum security researcher Pascal Marco Caversaccio, who warned about this in X.
Ethena is a synthetic dollar protocol on Ethereum that aims to provide a cryptocurrency-native monetary solution independent of traditional banking infrastructure. The protocol’s synthetic dollar token, USDe, is backed by crypto assets and corresponding futures short positions rather than fiat currency such as USDC or USDT.
The protocol uses a delta hedge of Ethereum and Bitcoin collateral to maintain the stability of the USDe peg. Key features of Ethena include permissionless vesting through external AMM pools, direct minting/redemption for approved market makers, and staking options for users in permitted jurisdictions to earn revenue from the protocol as rewards.
Frontend attacks pose significant risks to users interacting with the Ethena protocol. Frontend attacks can lead to theft of users’ funds or sensitive information by redirecting transactions or capturing input data.
Users are strongly advised to exercise caution and avoid any interaction with the protocol until the issue is resolved and officially communicated by the Ethena team. A recent update from the Ethena Labs team indicates that both the protocol and its funds have not been affected and adds that the site has since been disabled.
Ethena’s domain registrar account was recently compromised and we have taken steps to disable the site until further notice.
The protocol is not affected and the funds are safe.
Do not interact with any site or application that claims to be the Ethena interface.
— Ethena Laboratories (@ethena_labs) September 18, 2024
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