After losing $3.8 million in a September 27 hack that exploited known but unresolved security vulnerabilities, decentralized finance (DeFi) protocol Onyx announced Onyx Core, an open source permissioned financial network, as its core product to strengthen governance. We’ve received community approval to start over. .
The Onyx improvement proposal “(OIP)-46: Relaunch Onyx Core” was introduced on the same day as the $3.8 million security exploit. The proposal called for major changes to the protocol and product offerings, including shutting down the Ethereum-based lending market and repaying lenders “in full on a 1:1 basis for the assets they have supplied.”
source: onyx
By September 29, the OIP-46 proposal received full support from Onyx community members, with no votes against the proposed changes. The proposal is scheduled to go into effect on October 1.
OIP-46: Restart Onyx Core voting details. Source: app.onyx.org
The Onyx team will be publishing a revised whitepaper on the relaunch of Onyx Core as its primary product along with Onyxcoin (XCN) staking.
Onyx reassesses its core business products.
The restructuring also includes running the Onyx Protocol as a closed lending protocol on the Onyx Core, allowing users to wrap non-fungible tokens, real-world assets (RWAs), and crypto assets.
Onyx hackers manipulated NFTLiquidation contracts to inflate self-liquidating reward amounts. According to blockchain security company PeckShield, this vulnerability was previously used to attack Onyx in October 2023.
relevant: The hacker behind the $2 million cryptocurrency heist received a job offer from Victim Protocol.
Other hacks exploiting the same vulnerability include the Hundred Finance hack in April 2023. The goal of the proposed restructuring is to protect the Onyx protocol from future attacks.
Cryptocurrency hackers prefer to attack centralized exchanges.
Losses from cryptocurrency hacks exceeded $2.1 billion in the first three quarters of 2024, according to Web3 cybersecurity firm Cybers.
Centralized financial operators, such as cryptocurrency exchanges, were the biggest targets, with a 984% year-on-year increase in the first three quarters of 2024. Most of that occurred in the second quarter of this year, when the company lost $401 million.
Losses in the DeFi sector declined 25% year-on-year in the second quarter, but still resulted in 62 incidents resulting in $171.3 million in losses.
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