The Web3 protocol BetterBank has been targeted in a security breach resulting in an estimated loss of up to $5 million. The exploit is believed to stem from unauthorized bonus minting based on user-generated liquidity pairs, targeting the FAVOR token’s rewards system. BetterBank swiftly responded by pausing the protocol and deploying its reserves to mitigate losses. 4The team plans to relaunch their reward program with a new token airdrop and a revised smart contract. Further investigation has revealed the exploitation involved rogue liquidity pairs where users could create pairings against any token, including worthless assets, leading to the unauthorized minting of ESTEEM tokens by the attacker.