EraLend Separates Exploited Contract & Relaunches on zkSync

EraLend is relaunching its lending platform after an exploit draining protocol for $3.4 million.

The victim of a $3.4 million exploit, EraLend is now redeployed on zkSync with its upgraded protocol audited by PeckShield. The exploited smart contract, now called ‘EraLend Classic’, is separated from the upgraded protocol.

TL;DR
1. The affected protocol is now termed "EraLend Classic," with lending and borrowing functions disabled.
2. EraLend has been redeployed, excluding the SyncSwap LP pool.
3. All protocol fees will be allocated for victim compensation.
4. The Stellar program persists, ensuring…
— EraLend | The #1 Money Market on zkSync🥇 (@Era_Lend) August 8, 2023

According to the latest blogpost, borrowing and lending functions on EraLend Classic will be disabled. However, repayment and withdrawals will be operational until all users exit the platform.

The ‘New EraLend’ is launched excluding SyncSwap LP pool in order to avoid similar attacks further. The announcement also states that 100% of the protocol fees will be redirected to EraLend Classic’s USDC vault in effort to collect funds for previous exploit victims.

EraLend also revealed that it has onboarded SlowMist, a blockchain security company, that will guide the new protocol in security enhancements as well as in tracing the stolen funds.

The largest lending protocol on zkSync, EraLend was attacked on July 25 with the hacker stealing $3.4 million in USDC. The protocol had to shut down its operations since.

Also Read: Cypher Protocol Freezes Smart Contract after $1M Exploit

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