DeFi Protocol Fluid Suffers Backend Hack, Commits to Full Loss Coverage

On June 2, 2026, the DeFi protocol Fluid reported a hack that exploited a vulnerability in its backend systems, specifically affecting the Merkle reward distribution system. The attacker stole approximately 163,706 FLUID tokens and 49,526 GHO tokens using a remote code execution vulnerability in their internally ported Livewire library. Importantly, the core protocol, smart contracts, and user funds were not impacted by this incident. The Fluid team has taken immediate actions, including rotating operational keys, transferring remaining funds, and isolating the affected systems. They are actively working to recover the stolen assets and have pledged to cover all losses incurred by users. The restoration of the Merkle reward claiming function is expected within 10 days, during which rewards will continue to accumulate without user intervention.

Key Points: • Fluid protocol was hacked, resulting in the theft of 163,706 FLUID and 49,526 GHO tokens. • The attack exploited a remote code execution vulnerability in the Livewire library. • Fluid has committed to covering all user losses and restoring affected systems within 10 days.