Hundred Finance, a decentralized finance (DeFi) platform on veHND model and integrated with Chainlink oracles, has faced a severe security breach on Optimism layer-2 scaling solution. On April 15 2021, the company officially announced this news via Twitter stating that it incurred losses of approximately 7 million USD. To understand the scope of the hack, security firm CertiK has been employed by Hundred Finance and is currently investigating multiple angles of the situation.

As DeFi protocols provide a large number of advantages in terms of decentralization and cost savings, they are also considered highly risky because of security vulnerabilities which arise due to their ‘trustless’ nature. The Hundred Finance incident is an example of an attack in a multi-chain lending system, which heightened existing concerns regarding DeFi security.

While Hundred Finance is currently in talks with different security teams, its users are expecting to be rewarded through a compensation package covering part of their losses. However, since the scope of the damage remains unclear, the company has not yet been able to come to a conclusion on this matter.

Readers are advised to stay tuned to CryptoSlate for further updates on the Hundred Finance attack and any news regarding the security breach. As DeFi expansions continue to rise, it is essential for developers to pay utmost attention to the security concerns that come with its possibilities.



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