Hacked Truebit adds $1.3M as Uniswaps daily fee capture revenue hits record $1.4M

Nearly $1.3 million of Uniswap‘s record fees capture came directly from trades related to Truebit’s TRU token. Source: Dune Analytics.

The Truebit hack, which occurred earlier in the significantly affected Uniswaps financial metrics, ironically turning what was essentially a disaster into a record-breaking event for the prominent DEX.

Liquidity providers view this as a toxic flow despite the historical record it set under normal circumstances, Uniswaps daily trading fee capture revenue is considerably

This caused huge sell pressure on Uniswaps TRU liquidity pools, with fees stacking up with every trade. The platform was poised to benefit thanks to its fee model, which demands traders pay a small percentage on every trade. As such, when volume spikes, the fees skyrocket.

The incident tested Uniswaps protocol, but it stood strong, handling the insane volume without issues. The hack also revealed just how deadly old smart contracts can be and that even established projects can become vulnerable.

Truebit, a blockchain protocol that focuses on verifying complex computations without running them directly on-chain, was hacked on January 8.

The hacker reportedly targeted a flaw in one of the protocol‘s old contracts, which allowed them to mint an unlimited amount of TRU tokens at almost no cost before selling them back into the protocol’s binding curve.

This allowed the hacker to siphon the ETH reserved on a repeated cycle that ultimately helped them get away with about $26 million in ETH.

Blockchain security platform Cyvers was one of the first platforms to flag suspicious activity relating to the exploit after its real-time monitoring systems detected an anomalous transfer that saw a single address receive around 8,535 ETH, labeled on-chain as “Truebit Protocol: Purchase.”

Based on current market prices, the value of the ETH is estimated at approximately $26 million. According to the firm, the transfer was inconsistent with typical transaction flows associated with the protocol.

At first, the nature of the transaction was unknown. as things became clearer in the hours that followed, the TRU token dropped nearly 100% from 0.07 to almost zero. According to CoinMarketCap data, there is currently no circulating supply, and the market is at $0.

Meanwhile, the Truebit team acknowledged the flaw and urged users to avoid interacting with the contract while claiming they are working with security experts and law enforcement to trace the funds.