Clipper DEX Hacked for $450K, Exploiting Two Liquidity Pools

The decentralized exchange Clipper recently went on Twitter to report a protocol hack of nearly half a million dollars. At first, speculations were that the hack occurred due to a private key leak.

Decentralized exchange Clipper was hacked recently, losing nearly half a million dollars in the attack.

Initially, there were rumors that the hack was caused by a leak in a private key, but the exchange later clarified that the attacker exploited two liquidity pools on the platform. In total, the hacker stole about 6% of the total value locked in the liquidity pools.

According to Clipper, the attacker also tried to hit other chains but failed. Following the attack, the DEX paused all swaps and deposits on the platform to investigate the incident.

The exchange also expressed its willingness to negotiate with the attacker in the Twitter post, possibly to recover the lost funds.

Following the news of the hack, the exchange's native token, SAIL, dropped by over 10%. This price dip put a temporary halt to the token's month-long bullish momentum.

At the time of writing, $SAIL is already showing signs of recovery, up 1.46% over the last 24 hours.

While the theft of $450,000 is not comparable to other crypto cyberattacks this year, such as the $50 million hack of Radiant Capital or the $305 million stolen from Japanese exchange DMM, Clipper's attack was still a significant hit.

The exchange caters to small traders, aiming to offer some of the best prices in the market for trades under $10,000. Hence, the impact of the attack may have been felt more acutely within its community, given the smaller size of Clipper's user base and its focus on facilitating smaller trades.