The Impact of the vGHST Price Manipulation Attack on 0VIX Protocol

On April 29, it was reported that the Polygon Ecological Project 0VIX Protocol tweeted that at present, it has issued a ultimatum to the attackers on the chain, asking them to return the funds or bear the legal consequences of their actions. The exploit of this attack is the result of the price manipulation of vGHST, which is listed as a non mortgaged asset on 0VIX. As an emergency procedure, the transfer, mining, and liquidation of oToken have been suspended in the 0VIX Polygon POS and zkEVM markets. 0VIX is currently researching solutions, and more information on the situation and its impact will be released soon.

0VIX: An ultimatum has been issued to the attacker on the chain to request him to return the funds

Introduction

On April 29th, 2021, the Polygon Ecological Project 0VIX Protocol issued an ultimatum to attackers on the chain following an exploit caused by the price manipulation of vGHST, a non-mortgaged asset listed on 0VIX. This attack has resulted in an emergency procedure that has suspended the transfer, mining, and liquidation of oTokens in the 0VIX Polygon POS and zkEVM markets. 0VIX is currently researching solutions to the problem.

What is vGHST?

vGHST is a non-mortgaged asset listed on 0VIX. It represents a ghostly pet used in the Aavegotchi game, which is built on the Ethereum blockchain. The vGHST token can be bought and sold like any other cryptocurrency on decentralized exchanges (DEXs) like SushiSwap or Uniswap.

The Attack on 0VIX Protocol

The exploit of the attack is the result of the price manipulation of vGHST. The attackers were able to create a flash loan and inflate the price of vGHST on the 0VIX platform. This allowed them to mint and sell oTokens, earning a significant profit. The exploit caused losses of over $7 million worth of various tokens from the 0VIX platform.

The Response from 0VIX Protocol

As soon as the attack was detected, 0VIX Protocol implemented an emergency procedure to protect its users. The protocol suspended the transfer, mining, and liquidation of oTokens in the 0VIX Polygon POS and zkEVM markets. 0VIX is currently researching solutions to prevent such attacks from happening in the future.

Legal Consequences

In response to the attack, 0VIX Protocol issued an ultimatum to the attackers on the chain. They have been asked to return the funds or bear the legal consequences of their actions. If the attackers fail to comply, they will face legal action for their actions.

Impact on the Cryptocurrency Market

The attack has caused a significant impact on the cryptocurrency market. The price of vGHST has plummeted, losing over 50% of its value. The attack has also led to a decrease in the prices of other cryptocurrencies listed on the 0VIX Protocol platform like Aave and Sushiswap.

Conclusion

The 0VIX Protocol attack caused by the vGHST price manipulation demonstrates the vulnerability of the cryptocurrency market. It is crucial for users to remain vigilant and informed about potential risks of cryptocurrency investments. 0VIX Protocol has taken significant steps towards mitigating the impact of the attack and has issued an ultimatum to those responsible for their actions.

FAQs

1. What is 0VIX Protocol?
0VIX Protocol is a decentralized platform built on the Ethereum blockchain. It aims to provide users with low-cost options for decentralized trading, lending, and borrowing.
2. What is the significance of vGHST?
vGHST is a non-mortgaged asset listed on 0VIX Protocol. It represents a ghostly pet used in the Aavegotchi game, which is built on the Ethereum blockchain.
3. Can the funds lost during the attack be recovered?
It is unclear if the stolen funds can be recovered. 0VIX Protocol has issued an ultimatum to the attackers and has suspended certain activities on its platform to mitigate future attacks.