Silo Finance Suffers $545K Exploit in Smart Contract Test

Decentralized lending protocol Silo Finance confirmed a $545,000 exploit targeting an experimental leverage feature's smart contract. Blockchain security firm PeckShield identified the vulnerability in the contract's openLeveragePosition function, triggered by a user-controlled input flaw.

The breach occurred through a wallet that funneled funds via Tornado Cash, the sanctioned crypto mixer known for obfuscating transaction trails. Silo's core markets and vaults remain unaffected, with the team emphasizing the exploited contract was peripheral to main protocol operations.

SILO tokens plunged 11% to $0.04035 following the incident, according to CoinGecko data. PeckShield's threat detection systems flagged the malicious code just 3 minutes and 20 seconds before execution—a narrow window that underscores the relentless pace of DeFi exploits.