Cashio Token Plummets To Zero Amid $28 Million ‘Infinite Mint Glitch’

Cashio, a Solana-based algorithmic stablecoin project, has been exploited for US$52.8 million in an “infinite mint glitch”. Following the attack, the project’s total locked value (TVL) dropped from over US$28 million to US$579,701, and the project’s stablecoin CASH took a nosedive from US$1 to zero.

Cashio developer oxGhostChain took to Twitter to warn people “not to mint any CASH” and added that the team “are investigating the issue and we believe we have found the root cause. Please withdraw your funds from pools. We will publish a postmortem ASAP”:

Please do not mint any CASH. There is an infinite mint glitch.
We are investigating the issue and we believe we have found the root cause. Please withdraw your funds from pools. We will publish a postmortem ASAP.
— Cashio ($CASH) 💵 (@CashioApp) March 23, 2022

$28m Loss Just the Beginning

The attack was initially believed to have only siphoned off US$28 million from Cashio’s protocol, but after investigations the results were bleak, as was the reaction on Twitter:

CASH price drop following the attack. Source: DeFi Llama

Ongoing Tale of Woe for Solana

Anyone can mint tokens on the platform by depositing liquidity tokens for the two stablecoins USDC and USDT from the Saber platform. Thereafter, users can redeem the stablecoin for the underlying liquidity tokens.

Solana seems to be experiencing ever more difficulties. Along with this latest exploit, the Solana network was down temporarily in January after experiencing a DDoS attack.