TempleDAO’s STAX, was hacked yesterday for approximately $2.3M worth of LP tokens.
TempleDAO launched as one of many OHM-forks in the run-up to last year’s market top, before pivoting to stablecoin farm when the Olympus model crumbled.
Temple’s current focus is on yield for FRAX3CRV via Convex, and STAX forms part of their “flywheel system” as “a reward boosting liquidity layer for the FRAX/TEMPLE gauge”.
Despite initially establishing a cult-like following, the devotion of their users seems to be waning.
The day before the exploit, DCF GOD responded to a TempleDAO community vibe check:
”After a year of it, I’m low on hope”
Now that users have lost all hope, who still has faith in Temple DAO?
The alarm was raised by Spreek approximately an hour after the exploit, which was later confirmed by STAX. Although the damage done is unlikely to pose an existential threat to the wider TempleDAO protocol, the details of the exploit make for painful reading.
How did the devs make such a simple oversight when they published the contract in June?
And why did it take so long to be exploited?
This hack was worryingly simple.
The StaxLPStaking contract’s migrateStake() function did not contain any checks that the oldStaking parameter was valid.
This meant that anyone could create a contract with the same oldStaking parameter, specifying an arbitrary deposit amount and address to which the funds could be sent.
The resulting ~320k Stax Frax/Temple LP tokens were then swapped for ETH inside the attacker’s contract.
Attacker’s address: 0x9c9fb3100a2a521985f0c47de3b4598dafd25b01
Attack tx: 0x8c3f442f…
$2M is a relatively small amount compared to the TVL of TempleDAO, (~$57M according to DeFiLlama).
STAX have assured that ”Remediations will be made for all affected users.”
Arguably, the greatest damage done will be to the project’s reputation, after allowing such a basic error to make it to production.
TempleDAO have pointed out that their Temple Core Vaults are secure and share no common code with STAX. However, after such a simple oversight…
Can Temple users keep the faith?
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