Zunami Protocol, a decentralized finance protocol that offers yield farming for stablecoins, has warned its users not to purchase its Zunami Ether (zETH) or Zunami USD (UZD) tokens.
The protocol experienced an attack on its “zStables” pools on Curve Finance, a platform that allows users to swap between different stablecoins.
Zunami announced on X (Twitter) on Aug. 13 that its stablecoin pools were compromised, but assured users that their collateral was safe.
The protocol is investigating the cause and extent of the damage.
According to two blockchain security firms, PeckShield and Ironblocks, the attacker exploited a price manipulation issue and stole over $2.1 million from Zunami’s Curve Pool.
Zunami’s main products are its Zunami USD stablecoin and Zunami Ether, which are backed by other stablecoins and ether respectively. The attack has affected both of these tokens.