Athena Labs suffers frontal attack, confirms protocol remains intact

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Athena, a synthetic dollar protocol built on top of Ethereum, suffered a front-end compromise, prompting warnings to users to avoid interacting with its user interface or links. News of the compromise was first shared based on a search by Ethereum security researcher Pascal Marco Caversaccio, who warned about it on X.

Athena is a synthetic dollar protocol on Ethereum that aims to provide a crypto-native monetary solution independent of traditional banking infrastructure. The protocol’s synthetic dollar token, USDe, is backed by crypto assets and corresponding short-term positions, rather than fiat currency such as USDC or USDT.

The protocol uses delta hedging of Ethereum and Bitcoin collaterals to maintain the stability of the USDe peg. Key features of Athena include permissionless purchasing through external AMM pools, direct tapping/redemption for approved market makers, and staking options for users in authorized jurisdictions to earn protocol revenue as rewards.

Frontend compromise poses significant risks to users interacting with the Athena protocol. Front-end attacks can lead to the theft of user funds or sensitive information by redirecting transactions or capturing input data.

Users are advised to exercise caution and avoid any interaction with the protocol until the issue is resolved and officially communicated by the Athena team. A recent update from the Athena Labs team indicates that both the protocol and its funds are unaffected, adding that the site has since been disabled.

The Athena domain registrar account was recently compromised and we have taken steps to disable the site until further notice.

The protocol is not affected and the funds are safe.

Please do not interact with any website or application that purports to be the Athena interface.

— Athena Labs (@ethena_labs) September 18, 2024

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