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Decrypt1 min read
Another DeFi protocol hacked as Sui-based Volo hit by $3.5M exploit
TL;DR
DeFi protocol Volo has suffered a security breach, losing approximately $3.5 million in digital assets. The attack affected specific vaults, but $28 million in other assets remains secure.
Key points
- Volo lost approximately $3.5 million in a security breach
- The attack affected select vaults, including Wrapped Bitcoin and USDC
- Around $28 million in total value locked across other vaults is safe
- Volo plans to absorb the losses instead of passing them on to users
- The hack follows a recent $293 million exploit of the Kelp protocol
Mentioned in this story
VoloKelp
Sui FoundationWrapped BitcoinMatrixdock Gold
Decentralized finance (DeFi) protocol Volo has disclosed a security breach that resulted in the loss of approximately $3.5 million in digital assets, marking the latest incident in a series of exploits targeting DeFi platforms.
In a Wednesday post on X, the team said the attack affected select vaults and involved assets including Wrapped Bitcoin (WBTC), Matrixdock Gold XAUm and USDC (USDC). “We detected the attack, immediately notified the Sui Foundation and ecosystem partners to contain the damage, and froze the vaults to prevent any further exposure,” the team wrote.
The protocol added that around $28 million in total value locked across other vaults is safe, with the exploit limited to three isolated vaults and no shared vulnerability identified. It also revealed plans to absorb the losses rather than pass them on to users, though details of any remediation plan have yet to be finalized.
Volo is a liquid staking DeFi platform on the Sui blockchain, allowing users to stake their Sui (SUI) tokens and receive voloSUI (VSUI) in return. DeFi is already on edge, as the exploit comes as another liquid restaking protocol, Kelp, was hacked for approximately $293 million over the weekend, which has had a ripple effect across the broader ecosystem.
Related: Kelp DAO attacker moves $175M in Ether after exploit: Arkham
Volo freezes a portion of lost funds
In two separate updates, Volo said it has frozen or blocked roughly $2 million of the stolen funds so far. In the first update, the protocol said that roughly $500,000 linked to the breach has already been frozen. In a later update, the team claimed it had successfully blocked an attempt by the attacker to bridge 19.6 WBTC, effectively removing those funds from the hacker’s control.
“We are now working with ecosystem partners to determine the best path to return these funds to Volo,” the protocol wrote.
Q&A
What happened in the Volo DeFi protocol hack?
The Volo DeFi protocol experienced a security breach that resulted in a loss of around $3.5 million in digital assets.
How did Volo respond to the security breach?
Volo immediately notified the Sui Foundation, froze the affected vaults, and plans to absorb the losses without passing them on to users.
What other DeFi exploits have occurred recently?
The Volo hack follows another significant exploit where the liquid restaking protocol Kelp was hacked for approximately $293 million.
