OMNI was quick to point out that the protocol is still in beta, only due to funding for internal testing. The team has suspended the protocol and is currently investigating the cause of the attack. PeckShield later said the attack "appears to be reentrancy-related" in the attack.
After Doodle maliciously pledged the collectible NFT, the project was unable to recover its investment. The attacker deposits. Doodles uses packaged ETH (wETH) as collateral to attack. The exploiter can then take all but one. Doodle so he can execute the callback function so he can make the purchase. wETH to invalidate the debt.
Security firm Crypto BlockSec later detailed the breach, explaining the protocol's "old-fashioned reentrancy due to the onERC721Received hack. It also showed a flaw in the smart contract, suggesting that attackers were using it to borrow ETH from NFTs. Borrowing The ETH becomes bad debt and never needs to be repaid.
The incident is still under investigation and no OMNI report or any details have been released. The NFT protocol OMNI is a money market that provides lending services to users. OMNI can borrow users ERC-20 tokens and NFTs, and use NFTs to borrow cryptocurrencies as collateral.
