On December 2023, ChannelsFinance was exploited in a inflation attack, resulting in approximately $320K in losses. That makes the ChannelsFinance exploit the 140th largest DeFi incident out of 690 documented in our archive.
Attack Mechanics: How the ChannelsFinance Inflation Attack Played Out
Exploit Class Applied to ChannelsFinance
The ChannelsFinance incident on December 30, 2023 is classified as a Inflation Attack. An attacker inflates share-to-asset ratios in a vault, typically by donating assets directly to the vault to dilute later depositors. In the full archive, ChannelsFinance is 1 of 4 documented inflation attack incidents.
ChannelsFinance in Context
The $320K loss at ChannelsFinance is the largest inflation attack incident in our archive, ahead of bZxProtocol (2023, $208K).
Prior Inflation Attack Before ChannelsFinance
The nearest inflation attack incident before ChannelsFinance was bZxProtocol, 28 days earlier on December 2, 2023 ($208K lost). The same exploit class surfaced again within the inflation attack attack surface.
ChannelsFinance Vulnerability Signature
The primary source categorises the ChannelsFinance exploit specifically as “CompoundV2 Inflation Attack”. This narrower label is entity-specific: it reflects how the ChannelsFinance contract failed, rather than the broad inflation attack pattern alone.
Impact & Recovery for ChannelsFinance
ChannelsFinance Loss Figure
The ChannelsFinance exploit caused $320,000 in losses — a minor (<$1M) incident and the 55th largest of 214 documented in 2023.
Where ChannelsFinance Sits Among Inflation Attack Attacks
Ranked by loss size, ChannelsFinance is the 1st largest of 4 inflation attack incidents documented. That puts the ChannelsFinance loss above the class average of $135K.
Timeline Since the ChannelsFinance Incident
The ChannelsFinance exploit occurred 2.3 years ago (836 days). The contract, its fork-block, and the attack transaction remain on-chain and forensically reproducible.
Primary Reference for ChannelsFinance
Public post-mortem / on-chain analysis for the ChannelsFinance incident: view source.
FAQ
How much did ChannelsFinance lose?
The ChannelsFinance exploit in December 2023 resulted in $320,000 in losses — the 55th largest of 214 DeFi incidents that year.
When did the ChannelsFinance hack happen?
The ChannelsFinance exploit was recorded on December 30, 2023 — 836 days ago.
What type of exploit hit ChannelsFinance?
The ChannelsFinance incident is classified as a Inflation Attack. An attacker inflates share-to-asset ratios in a vault, typically by donating assets directly to the vault to dilute later depositors.
How common is the Inflation Attack pattern seen at ChannelsFinance?
Our archive contains 4 documented inflation attack incidents. The ChannelsFinance incident is one of them.
How does ChannelsFinance compare to the largest Inflation Attack attack?
The largest inflation attack incident in our archive is bZxProtocol (2023) at $208K. The ChannelsFinance loss is $320K.
What model is applied to estimate volatility in the study?
A Markov-switching HAR model.
What advantage does IPFS offer in the context of the BBDSPP scheme?
IPFS provides efficient and decentralized data storage, reducing blockchain's storage burden and improving data retrieval speed.