- A Peckshield report has indicated that Kannagi Finance has rug pulled, making away with as much as $2.13 million in investor funds.
- The platform runs o the zkSync Period, which is within the race for the very best Ethereum Layer 2 community.
- The community has deleted its official web site, together with social media and communication accounts.
zkSync Period income aggregator protocol Kannagi Finance is the most recent rug pull story after the undertaking disappeared within the blue, leaving buyers questioning what occurred to their investments value over $2 million.
Additionally Learn: OP threatens ARB in each day customers for the primary time as L2 wars for the very best Ethereum Layer 2 intensify
zkSync Period based mostly Kannagi Finance rug pulls over $2 million
Buyers within the Kannagi Finance undertaking, which runs on the L2 community zkSync Period are struggling the most recent victims of crypto crime after the yield aggregator vanished in skinny air.
Kannagi Finance, whose ticker image is the KANA, was touted as a decentralized yield aggregator dedicated to empowering buyers to additional reap compound curiosity from their cryptocurrency property. Notice the usage of the phrase “was” as a result of the web site and undertaking as a complete is gone prefer it by no means existed.
The one remaining hint of the undertaking is the variety of buyers who now cry wolf after shedding their investments. Citing one sufferer in a Twitter publish:
I used to be RUG about 200,000 U, is there a option to get it again?
The Complete Worth Locked (TVL) of Kannagi Finance was $2.13 million as of July 28, however the present TVL has nearly returned to zero, recording a meager $0.17 on the time of writing. This interprets to an estimated 100% person loss.
Kannagi Finance TVL
Notably, the Kannagi Finance contract code was not even verified open-source, underscoring the necessity for correct due diligence earlier than investing in cryptocurrency tasks.
zkSync Period suffers by affiliation
The rug pull has tarnished the fame of zkSync Period, threatening its place within the race for the very best Ethereum L2 community. As reported, zkSync at the moment ranks third after Arbitrum (ARB) and Optimism (OP), with a complete worth bridge of $455,863,420 on the time of writing.
Because the L2 wars proceed, the lack of confidence ensuing from exploits just like the case in EraLend and now zkSync Period continues to pose as a detractor. As reported on July 25, zkSync Period lending protocol EraLend exploited for $3.four million in USDC. The lending protocol has since suspended all borrowing operations and can be advising customers towards depositing USDC. EraLend can be an Ethereum L2.
Additionally Learn: zkSync Period lending protocol EraLend exploited for $3.four million in USDC
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