ParaSwap V6 Contract Hack on March 20: $434k Lost, Whitehat Saves $2.7M

ParaSwap, a middleware for traders and decentralized applications, encountered a critical vulnerability in its Augustus V6 contract, leading to an immediate response from the team and the crypto community. Users were urged to revoke approvals to the contract as a precautionary measure. The vulnerability was discovered shortly after the contract's launch on March 18, prompting ParaSwap to pause the V6 API on March 20 to protect users' funds. Despite these efforts, a hacker managed to exploit the vulnerability, resulting in the theft of $24K and affecting 386 addresses. In a significant move to mitigate the damage, whitehat hackers intervened, relocating $2.7M to a secure address 0x66E90d840D7C4F3473E25dD8ca361747058c6Db0. However, the total losses amounted to approximately $434k. The incident has sparked discussions about the risks associated with 'gas golfing' in smart contract development, highlighting the need for security over optimization.