Hungred Finance (HND): What is the Future of Cross Chain Lending Agreement after being Hacked?

On April 16th, according to CoinGecko market data, Hungred Finance (HND) fell to $0.022 and is now quoting $0.0220632, a 24-hour decline of 49.9%. Previously, it was reported that the cross chain lending agreement, Hungred Finance, was hacked on Optimism, with an estimated loss of approximately $7 million.

Hungred Finance (HND) fell to $0.022, a 24-hour decline of 49.9%

#Introduction

On April 16th, according to CoinGecko market data, Hungred Finance (HND) fell to $0.022 and is now quoting $0.0220632, a 24-hour decline of 49.9%. Previously, it was reported that the cross chain lending agreement, Hungred Finance, was hacked on Optimism, with an estimated loss of approximately $7 million. This article would dissect the factors responsible for the hack and its aftermath on the cross chain lending agreement.

#What is Hungred Finance?

Hungred Finance is a decentralized lending agreement that acts as an intermediary between liquidity providers and borrowers by granting the lenders a substantial return on their tokens as interests. Through the use of cross-chain technology, Hungred finance resolves the existing problems of liquidity within crypto lending.

#How Was Hungred Finance Hacked?

On the morning of April 15th, the Hungred Finance team announced that their protocol was compromised by hackers through the cross chain bridging protocol, and the attackers had siphoned about seven million dollars ($7M) from the platform. According to reports, the hacker took advantage of a bug in the Optimism’s L2 system. Although the team had noticed that the platform was suffering from a bug, they believed it to be a minor issue and deemed it unnecessary to engage in a migration process. Despite the exploitation, the team confirmed that users’ funds on other chains remained safe.

#What Are The Aftermaths of the Hack?

Following the attack, the management assured investors that the cross-chain bridge connecting other chains would be disabled to prevent further unauthorized transfers. Meanwhile, the Hungred finance team has stated that it is working with prominent auditing firms such as Peckshield, Quantstamp, and Slowmist to investigate the hack and develop new security features to mitigate the risks and attack penetration.

#What Is the Future of Hungred Finance?

The hack exposes Hungred finance to the vulnerabilities of web3 technology. However, through security updates and auditing processes, it’s possible to make the platform immune to attacks, reducing its vulnerability to hackers. Meanwhile, Hungred Finance remains a great alternative lending agreement for liquidity providers or borrowers in the crypto industry; in the aftermath of the hack, the agreement should strengthen its security apparatus to prevent future exploitation.

#Conclusion

Cross-chain lending agreements are the future of lending in the crypto industry. However, attackers are exploiting its vulnerabilities, putting investor’s funds at risk. The Hungred Finance hack should serve as a highlight on the importance of security in the DeFi industry. It is a wake-up call for every DeFi platform to continually invest in resources to improve security measures, prevent future operations, and protect investor’s funds.

#FAQs

Q: What is Hungred Finance?
A: Hungred Finance is a decentralized lending agreement that acts as an intermediary between liquidity providers and borrowers by granting the lenders a substantial return on their tokens as interests.
Q: How was Hungred Finance Hacked?
A: On the morning of April 15th, the Hungred Finance team announced that their protocol was compromised by hackers through the cross chain bridging protocol, and the attackers had siphoned about seven million dollars ($7M) from the platform.
Q: What is the future of Hungred Finance?
A: The Hungred finance hack should serve as an eye-opener on the importance of security in the DeFi industry. It is a wake-up call for every DeFi platform to continually invest in resources to improve security measures, prevent future operations and protect investor’s funds.