Set Protocol Exploited Due to Smart Contract Vulnerability
Set Protocol experienced a security incident resulting in a loss of approximately $9,600. The exploit was due to insufficient state locking in the smart contract, allowing for asset valuation manipulation.
The DeFi protocol Set Protocol was exploited through its ExchangeIssuance contract. The attacker utilized a malicious manager pre-issue hook to artificially inflate asset valuations, specifically the positionMultiplier.
This manipulation led to the contract transferring excess assets based on falsified data. The incident resulted in a financial loss of around $9,600.