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Stablecoin Cashio plummets by 100% due to infinite mint glitch Stablecoin Cashio plummets by 100% due to infinite mint glitch

Stablecoin Cashio plummets by 100% due to infinite mint glitch

An attacker managed to mint $2 billion worth of Cashio (CASH) stablecoins without providing anything in return.

Stablecoin Cashio plummets by 100% due to infinite mint glitch

Cover art/illustration via CryptoSlate

The price of Cashio (CASH), a USD-pegged stablecoin based on the Solana blockchain, dropped to nearly zero today after a newly discovered exploit allowed users to produce unlimited amounts of the token.

โ€œPlease do not mint any CASH. There is an infinite mint glitch,โ€ Cashioโ€™s Twitter account announced today. โ€œWe 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.โ€

Under normal circumstances, users had to lock up their USDT and USDC stablecoins in a liquidity pool in order to mint Cashio. However, the exploit allowed at least one attacker to mint 2 billion CASH tokens without providing anything in return. Consequently, the hacker used his newly acquired โ€œfreeโ€ tokens to drain other stablecoins from Cashio’s pools.

Cashio's (CASH) price dropped by 100%. Image: CoinGecko
Cashio’s (CASH) price dropped by 100%. Image: CoinGecko

As a result, the price of CASH crashed from $1 to $0.00005786, effectively losing 100% of its value, according to crypto metrics platform CoinGecko.

Prior to the crash, around $28.9 million worth of CASH tokens were locked in the ecosystem, DeFi Llamaโ€™s data shows. However, after the glitch was discovered and exploited, this figure shrunk to just about $580,000.

Cashio's TVL shrunk from $28.9 million to $580,000. Image: DeFi Llama
Cashio’s TVL shrunk from $28.9 million to $580,000. Image: DeFi Llama

In its turn, Saber, a Solana-based market maker protocol on which Cashioโ€™s liquidity pools were based, quickly stopped the corresponding operations.

โ€œWe’ve paused all $CASH poolsโ€”we are investigating the issue and will provide an update ASAP,โ€ Saber tweeted today.

Sadly, Cashio is far from the first โ€œstableโ€ token that ultimately proved to be anything but. For example, the price of SafeDollar, an algorithmic DeFi stablecoin based on the Polygon blockchain, similarly dropped to near-zero due to a $248,000 exploit last summer.

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