Palmswap has fallen victim to a hacker attack, resulting in a loss of 901,400 USDT funds. The official response includes suspending the PLP contract and related contracts.
It is reported that Palmswap is a decentralized perpetual leverage trading platform built on the BNB Chain, and it has forked the code from GMX. Prior to the hack, its Total Value Locked (TVL) was 1.07 million USD.
According to the security team Beosin Alert, Palmswap was attacked due to a problem with the calculation method for adding and removing liquidity. When the attacker added liquidity, the exchange rate between USDP and PLP was 1:1. However, when the same amount of PLP was removed, the attacker was able to exchange it for 1.9 times the amount of USDP, resulting in a profit.