Liqwid Labs, a notable DeFi protocol leveraging the Cardano blockchain, recently succumbed to a security breach on its Discord server. The company disclosed the unfortunate incident in a tweet, advising its community to refrain from clicking any server-linked content until the matter was fully resolved. The company identified that a deceptive link was the tool of the hacker, which allowed them to hijack an admin’s account, bypassing the two-factor authentication (2FA) security measure.
Immediate Response to Discord Hack
In the aftermath of the hack, Liqwid Labs swiftly took action to restore the integrity of their server. The company immediately secured the compromised server, deleted the affected admin account, and purged all rogue accounts and spam messages that arose during the breach.
Liqwid Labs’ Plan to Enhance Security Measures
In response to this security violation, Liqwid Labs revealed its strategy to fortify its security framework. The company is set to establish a dedicated “cold admin” account that will exclusively manage the server, thereby limiting the threat of similar occurrences in the future. Additionally, Liqwid Labs will revoke the admin rights of all other regular user accounts currently held by its administrators.
This incident underscores the critical challenges and potential vulnerabilities facing the burgeoning DeFi sector. As the industry continues to grow, it remains vital for DeFi companies to continually reassess and strengthen their security protocols.
About Liqwid Labs
Liqwid Labs is an innovative DeFi protocol providing a non-custodial interest rate service that caters to various stakeholders including lenders, borrowers, and developers. Users of Liqwid Labs can earn interest on their deposits, borrow assets with ease, and yield returns on their ADA investments from four unique yield streams. The protocol also offers users access to a global liquidity pool for each asset.