In the blockchain scene, hacks and exploitations are quite common and a lot of projects have had their fair share of malicious attacks in the last couple of years. Umbrella Network caught ‘the bug’ when hackers succeeded in exploiting a bug in the network’s chain oracle smart contract on the 8th of May, 2022. The hackers proceeded to manipulate price feed data of two of Umbrella’s top data pairs namely: FTS-USD and MAHA-USD.
While no Data from Layer 2 was manipulated, attackers were able to siphon USD 2.2MM and USD 700K in funds from Fortress and MahaDAO respectively. As of writing, Umbrella Network is compensating Fortress with 10MM in the network’s tokens and $500K in USDC, to be vested linearly in the space of a year.
On the other hand, MahaDAO will be receiving 2.5MM UMB tokens and $500K worth of USDC. I have to admit, I’m highly impressed by Umbrella’s response to the exploitation and measures taken to prevent future hits. Besides liaising with a specialist outfit to help recover stolen funds, Umbrella Network is set to undertake a modification procedure for their process.
Keep reading to learn what they are:
Slow down Product Rollout and Development Pace
Umbrella Network aims to slow down its delivery of solutions and developments to enable them to focus keenly on failsafe development processes and security.
An internal subcommittee for security will also be formed to execute top-notch security practices. This subcommittee will consist of senior team members from the network’s development team. They will be tasked with the responsibility of reviewing and assessing the security of the Umbrella Network. This includes codebase, tech, and solutions. The subcommittee will also carry out a thorough and precise review of all codes on Umbrella.
Umbrella Network has its sights set on several strategic partners. And will leverage more engineering expertise and resources in the coming future.
Quality Assurance Testing
Umbrella Network will also be getting a Quality Assurance Tester as an addition to an already solid engineering team.
There’s more to the measures Umbrella will be taking on their platform. Another one of them is making periodic reports available to the community. These reports will cover the new implements to the network’s process from here on. In addition, the network is cooking up an internal AMA featuring John Chem and Sam Kim to attend to other concerns and questions the community might have in the days to come.
In their statements concerning the exploit, Umbrella Network has been transparent enough to take responsibility for slips in their development process. But a massive upgrade is in the works; geared towards improving this oracle network while maintaining its ability to create solutions and a product that offers genuine value for everyone in need of quality, cost-effective, and varied on-chain data.
At Umbrella Network, the core values remain unadulterated and the network is all up for achieving the reason why it was built in the first place. However, instead of recent events, Umbrella aims to fortify the network with a fresh set of policies and processes.
About Umbrella Network
Umbrella Network is a scalable, decentralized, and community-owned oracle that utilizes Layer 2 technology to integrate real-time data into smart contracts for accurate and timely reports. Umbrella Network brings the world’s data to blockchains to enable DeFi applications to perform at the optimum level regarding precise information dissemination.
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