Synthetics Implemented Right (SIR.trading), an Ethereum-based DeFi protocol, was the unfortunate victim of a devastating hack on March 30, 2025, resulting in the loss of the entire $355,000 total value locked (TVL) at that time. The breach, detected by blockchain security firms TenArmorAlert and Decurity, sent shockwaves through the decentralized finance community. As warnings spread on social media, founder Xatarrer was forced to confront the harsh reality of the situation, labeling it as “the worst news” for the protocol. Despite the setback, Xatarrer vowed to salvage what remained and potentially restore the protocol to its former state.
The attack, which struck at the heart of SIR.trading’s contract vault, exploited a specific vulnerability tied to Ethereum’s transient storage feature. Termed a “clever attack” by Decurity, the breach involved manipulating a callback function within the vault’s code. By substituting the genuine Uniswap pool address with one under their control, the hacker gained access to redirect the funds effortlessly. Through continuous activation of the callback function, the entire balance of the vault was siphoned off, leaving the protocol reeling in its aftermath.
The repercussions of this breach extended beyond SIR.trading, casting doubts on the security of Ethereum’s transient storage feature. Introduced during the Dencun hard fork, the feature had promised reduced gas fees and temporary data storage capabilities. However, SupLabsYi, a blockchain security expert, noted that this attack might be one of the initial instances where vulnerabilities in transient storage were exploited. The incident served as a stark warning of emergent risks associated with utilizing this nascent feature, indicative of potential future vulnerabilities awaiting exploitation.
In light of the staggering loss incurred, the team at SIR.trading displayed resilience in their decision to press forward with operations. The stolen funds were traced to an address associated with the Ethereum privacy solution Railgun, prompting Xatarrer to seek their assistance in recovering the looted assets. Notably, SIR.trading had positioned itself as a secure DeFi platform for leveraged trading, although its documentation had underscored the inherent risks posed by bugs in its smart contracts—a prophecy that tragically manifested in the recent breach.
The aftermath of the hack painted a somber picture for SIR.trading, as the community grappled with the aftermath of the breach and the uncertain future that lay ahead. While the protocol’s foundation had been shaken to its core, the resolve of its team and the collaborative efforts with external entities hinted at a possible path towards redemption. As the dust settled on the wreckage left by the attack, the DeFi ecosystem braced itself for the enduring implications and lessons gleaned from the unfortunate ordeal.