💥Exploit & Relaunch

What Went Wrong, and What Comes Next

Incident Overview

On March 30, 2025, SIR Trading's vault was drained of its entire $355 K TVL when an attacker weaponized Ethereum's new transient storage (TSTORE/TLOAD) feature:

1. Setup

   • Attacker deployed a custom Uniswap V3 pool and initialized a vault in our Vault contract.

   • During uniswapV3SwapCallback, the transient storage slot at position 1 was used to verify the caller was a Uniswap pool, however by the end of the execution that slot was overwritten by tstore(1, amount), leaving stale data.

2. Vanity‐Address Exploit

   • By brute‐forcing a CREATE2 address whose numeric value equaled the forged mintAmount, the attacker passed our pool-address check.

   • They repeatedly invoked uniswapV3SwapCallback, siphoning all collateral through the compromised slot.

3. Stolen Funds Trail

   • Initial funds (0.3 ETH) came from Railgun.

   • Attack TX: 0xa05f047ddfdad9126624c4496b5d4a59f961ee7c091e7b4e38cee86f1335736f

   • Attacker: 0x27defcfa6498f957918f407ed8a58eba2884768c

Root cause: our callback logic did not clear or re-validate the transient‐storage slot between operations, allowing a crafted value to masquerade as the pool address.

Our Emergency Response

When the exploit hit, we sprang into action using our protocol’s built-in safety guardrails:

1. Emergency Mode Activated We suspended all new deposits to stop any further loss while still allowing users to withdraw their funds.

2. Shutdown After 20 days we have permanently locked the protocol to ensure nobody will ever use it.

What’s Next

We're now focused on a robust restart:

1. Three Parallel Private Audits are already underway.

2. Public Audit: Up to $50K will be allocated to reward the discovery of any missed critical vulnerabilities.

3. Funding: A capped public sale is now live to help us cover audit costs and relaunch expenses.
4. Relaunch Timeline: We aim to deploy the upgraded protocol on Ethereum mainnet roughly one month after the sale ends, subject to audit results.