Balance Coin, an algorithmic stablecoin designed to maintain a peg to the US dollar, has fallen more than 99% following a reported exploit. The stablecoin, the native algorithmic stablecoin o
Balance Coin, an algorithmic stablecoin designed to maintain a peg to the US dollar, has fallen more than 99% following a reported exploit.
The stablecoin, the native algorithmic stablecoin of Balance Protocol, is currently trading at $0.001358, down from $0.9954, according to CoinMarketCap.
Blockchain security firm PeckShield on Wednesday said the depeg followed a $915,000 exploit of decentralized autonomous organization 42DAO, which governs the Balance Protocol and its BLC token.
TenArmor said there were two attack transactions involving GemJoin and 42DAO on the BNB Chain.
Onchain data shows that the first attack involved the minting of 4.5 million BLC from a null address, which was then sent to PancakeSwap V2, and swapped for Binance-pegged USDT (BSC-USD) and Binance Bitcoin (BTCB).
A second attack replicated the exploit two hours later, minting an additional 5,900 BLC to extract BSC-USD and BTCB.
This is a developing story and more information will be added as it becomes available.
