Terraport, the new DeFi platform of Terra, victim of a hack

Since the fall of the UST algorithmic stablecoin, Terra projects have encountered many difficulties. This Monday, Terraport, a decentralized Terra DeFi exchange project, fell victim to a hack, resulting in estimated losses of around $2 million just days after its launch. Terraport confirmed that the hacker emptied all the platform’s liquidity pools.

Terra DeFi project suffers hack ten days before launch

This Monday, April 10, the decentralized finance exchange Terraport has been victim of a hack that resulted in a heavy loss. This situation is even more difficult for users of Terra Classic, which have already suffered several setbacks in recent times. Indeed, Terraport is a relatively new DeFi platform, which was launched on March 31st.

On Twitter, Terraport reported that the hacker had successfully emptied all of its liquidity pools, resulting in the loss of $2 million of assets. This is a huge amount of money and suggests that the security teams at Terraport still have a lot of work to do.

To reassure users, Terraport works in collaboration with the main exchange platforms and community members to secure funds and blacklist portfolios. The funds were closely monitored and the stock exchange’s security teams were asked to freeze the assets as soon as possible.

However, according to sources, the hacker transferred these funds via larger platforms such as Binance to avoid detection. A real game of cat and mouse is thus engaged between the teams of Terraport and the hacker.

Critics point to Terraport’s hasty launch

Terraport’s hasty launch has drawn a wave of criticism, including from security experts and Terra users. After a token sale in February and March 2023, TerraCVita launched its decentralized LUNC-based Terraport exchange (LUNC) on March 31.

Nonetheless, the rush led to some unfortunate consequences. Some experts claimed that Terraport had gone live without conducting an audit. One commenter on Twitter even suggested that the race to pre-sell was the real motivation behind the hasty launch.

Despite this, TerraCVita said that this situation would not discourage Terra Classic users, and that enhanced security measures would be put in place to prevent further hacks.

The hacking of Terraport, Terra’s new decentralized finance platform, has caused a strong reaction. Unfortunately, this is far from new for Terra’s followers, who have already suffered crucial losses following the collapse of the UST algorithmic stablecoin. It is therefore imperative that TerraCVita take the necessary steps to ensure the safety of its users and regain their trust.