Garden Finance Loses $11 Million in Protocol Attack

Garden Finance suffered an $11 million loss due to a targeted attack on its solver, but user funds were protected. Co-founder Jaz Gulati confirmed normal protocol operations and ongoing investigations with security partners.

Jaz Gulati, co-founder of Garden Finance, announced on X that the protocol suffered an $11 million loss due to an attack, while user funds remain intact.

Garden Finance’s $11 million loss highlights vulnerabilities in DeFi protocols, urging tighter security measures.

The attack on Garden Finance resulted in losses of approximately $11 million, specifically targeting a solver mechanism. Co-founder Jaz Gulati confirmed that user funds were unaffected, ensuring the existing investment base remains stable and trust unshaken.

“Approximately $11 million was lost due to an attack on the solver, but user funds were not affected. The protocol’s operation and security are intact, and we are working with security partners to investigate the incident.” – Jaz Gulati, Co-founder, Garden Finance

Gulati emphasized the unaffected status of the protocol’s core operations and assured the community of continuing robust protocols. Meanwhile, a 10% bounty was established for fund recovery, showcasing the protocol’s dedication to resolving security issues.

The exploit led to a 64% drop in SEED token value, impacting the liquidity and market sentiment. Additionally, wrapped Bitcoin and Ether were among the assets stolen, affecting associated DeFi projects and highlighting the interconnected risks within the ecosystem.

Despite the financial setback, Garden Finance continues with its security overhaul efforts. The absence of major regulatory responses underscores the ongoing challenges in securing blockchain protocols. However, the event reiterates the growing need for comprehensive security strategies.

Analysts point out that such breaches stress-test the robustness of DeFi protocols, urging for better preventive measures. Historical data suggest an increase in such attacks, prompting the need for enhanced blockchain security practices.