Complex internal accounting systems
Days in Operation:
100 pts each
SperaxUSD is a stablecoin built on Arbitrum. The protocol announced that the project was exploited.
The exploiter was able to increase the token balance for their address to 9.7bln tokens without providing matching collateral and was able to liquidate around ~300k $USDs before he was stopped by joint actions of the Sperax team and Arbitrum ecosystem partners.
The root cause of the hack is due to its internal balance accounting discrepancy caused when migrating an account from non-rebasing to rebasing-based accounting. This was attributed to the fact that USDS has at least three different accounting systems, two separate auto-migration systems, and all share the same variables, just interpret their meaning differently. Thus, all account variables have to be updated together in order to accurately calculate a user's balance.
Updated 2/7: Funds are fully recovered. https://twitter.com/peckshield/status/1622743598096855040
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