The web3 social finance app built on Avalanche, known as Stars Arena, made a successful relaunch on Sunday. However, it temporarily suspended trading features, as disclosed in a Stars Arena update.
“The Arena will reopen on Sunday, but trading functionality will remain on pause. Further information regarding the resumption of trading will be communicated shortly following the relaunch,” stated the SocialFi protocol on X.com.
While the app is now accessible, trading functions will be reinstated only after a thorough audit. Stars Arena clarified in a subsequent announcement, “Trading will be reactivated once the comprehensive audit is completed and the contract is made available for community scrutiny through open sourcing.“
Recovering from a Security Breach
Stars Arena encountered a security breach on October 7, resulting in an approximate loss of $2.9 million worth of AVAX tokens. This exploit led to the complete loss of funds held in its smart contract.
In response to the hack, the social finance platform managed to recover roughly 90% of the stolen assets. This recovery was accomplished through negotiations with the individual responsible for the attack, as confirmed by the Stars Arena team. In exchange for a 10% bounty, the hacker returned 239,493 AVAX tokens.
Stars Arena operates as an on-chain social finance application built on the Avalanche blockchain. It is a derivative of FriendTech, an app that allows users to purchase tokens granting access to individual chat rooms.