Algebra DEX Engine Reports 211.9 ETH Loss in Security Breach, Investigation Underway
In Brief
Algebra DEX Engine faced security breach and a loss of 211.9 ETH, investigation revealed that the issue was unrelated to the Algebra code.
Liquidity protocol Algebra DEX Engine recently experienced a security breach resulting in the loss of 211.9 ETH, valued at approximately $469,000. Algebra DEX Engine initially disclosed the attack, initiating an investigation to determine its source.
During the inquiry, it was clarified that the issue was unrelated to the Algebra code.
Subsequent analysis by PeckShield monitoring revealed that the security breach was not associated with Algebra DEX Engine but rather with the Arbitrum ecosystem protocol linked to the liquidity management protocol Gamma, a partner of Algebra.
Gamma, a protocol designed for non-custodial, automated and active management of concentrated liquidity, responded to the incident by assuring users of ongoing monitoring and security measures. While addressing the situation, Gamma highlighted the continued safe functionality of the platform’s front end for users seeking to withdraw their funds.
In a statement on social media (formerly Twitter), Gamma conveyed its commitment to resolving the issue and pledged to provide updates once available. Users were urged to exercise patience during the ongoing security precautions and assessment.
The protocol integrates into a Web Application, featuring an automated interface accessible to all users and a whitelisted Enterprise interface tailored for organizations such as DAOs, treasuries, and protocols.
Algebra serves as a DEX Engine, providing projects the capability to seamlessly incorporate Concentrated Liquidity technology, Dynamic Fees, Built-in Farming, and other features. It has already been successfully integrated into various decentralized exchanges such as Camelot, THENA, QuickSwap, StellaSwap, Lynex, Swapsicle, Synthswap, among others.
Last year, Algebra DEX Engine established a long-term partnership with Gamma Strategies. Through collaboration, Gamma aims to offer automatic rebalancing of liquidity to maintain it within the specified range and auto-compounding of generated swap fees for maximizing capital efficiency.
The recent security incident prompted a joint response from Algebra DEX Engine and Gamma, emphasizing ongoing measures, while both protocols maintain a commitment to addressing the issue and ensuring user safety and operational functionality.
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
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Alisa is a reporter for the Metaverse Post. She focuses on investments, AI, metaverse, and everything related to Web3. Alisa has a degree in Business of Art and expertise in Art & Tech. She has developed her passion for journalism through writing for VCs, notable crypto projects, and scientific writing. You can contact her at alisa@mpost.io
