Jimbos Protocol Exploited for $7.5 Million 3 Days Following Launch

It’s been reported that the Jimbos protocol was exploited for $7.5 million just three days after its launch. Here are more reports about this below.

Crypto project Jimbos Protocol was exploited for 4,090 ETH ($7.5 million) just three days after its version 2 was launched.

According to PeckShield, crypto analysts, the hack occurred due to the protocol’s inability to control slippage for the tokens it manages.

The attacker utilized a flash loan of $5.9 million, which involves borrowing and repaying tokens instantly, to conduct the attack.

We are aware of the exploit regarding our protocol and are actively in contact with law enforcement and security professionals.

We will release further information when possible.

— Jimbos Protocol (v2, soon) (@jimbosprotocol) May 28, 2023

There is a new token called the Jimbos Protocol that is based on Arbitrum. It aims to have a semi-stable floor price and is backed by assets.

The developers have taken inspiration from the Olympus DAO project, which experienced a sudden rise in price before crashing, but have made some modifications to make Jimbos Protocol more sustainable.

The primary concept is to utilize the liquidity of the project itself to bolster its value, along with the implementation of taxes and incentives.

The project was first introduced on May 16, but unfortunately, a smart contract bug hindered the protocol’s functionality shortly after its launch.

Users were advised to refrain from engaging with version 1 and patiently wait for version 2 to be released.

As per TraderJoe, the decentralized exchange, the token’s value has plummeted from $0.24 to $0 after the recent version 2 exploit.

On the project’s website, it notes that “these mechanisms are experimental, the contracts are unaudited, and that any amount of money you put into this protocol can be lost due to unforseen circumstances at any time.”

A well-known crypto investor, DCF God, recently shared that he had purchased some Jimbo tokens on May 25th.

However, he soon realized that these tokens did not have the feature he was looking for. Today, he expressed disappointment by stating, “I am now experiencing a loss.”