Midas Capital halted borrowing on its jAssets pool following a flash loan attack and has made a bounty call to the attacker. As Midas Capital deals with the consequences of the exploit, it seeks a negotiation with the attacker and says it is working on strategies like doing an “internal due diligence” to ensure such an event doesn’t repeat. Also, the platform says it would “try to come up with a strategy to deal with the losses to users and partners.”
The attacker was requested by Midas Capital to reach out to them or get in touch with Jarvis Network. The attack was on Midas Capital Jarvis Polygon pool and left the attacker with over 663,101 MATIC ($660,000 in fiat equivalent).
Acknowledging the attack and its effects, Midas Capital said it has learned from the event and now knows they were “too eager to expand protocol capabilities. Further highlighting the lessons learned, Midas Capital said they were too certain about the due diligence and now know “it can lead to big oversights and loss of funds.” Additionally, “we’ll remain focused on building tools for best managing risk,” Midas Capital said.
However Midas Capital still holds that the isolated pool model they adopted offers one of the best opportunities and some of its recently developed features diminished the attack surface.
According to Midas Capital, One of the features which is putting supply caps on newly added tokens helped diminish the attack. But, “we did not consider using another protocol feature, which is putting borrow limits on a (newly added) collateral or having a cooldown period before enabling the asset. This would prevent the attacker from borrowing as much as they did, limiting the attack surface.”
Midas Capital stated that moving forward, the platform will be cautious with adding collaterals, work on developing a proper risk assessment framework for adding new collaterals to a pool and revise its processes.
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