Value DeFi protocol suffers $6 million flash loan exploit

Value DeFi protocol suffers $6 million flash loan exploit

Following a Twitter thread on Friday that highlighted the decentralized finance protocol’s flash loan exploit prevention methodology, Value DeFi appears to have been the victim of a $6 million flash loan exploit. 

At roughly 10:45 AM EST, a user took out a flashloan of 80,000 ETH (over $36 million) from lending protocol Aave. Aave developer Emilio Frangella immediately called attention to the loan:

80.000 eth flashloan on @AaveAave

— Emilio Frangella (@The3D_) November 14, 2020

Trending: Bill Barr and Trump Administration Fast-Track New Rule To Allow For Additional Forms of Federal Execution

The attacker then used the funds to conduct a flash loan arbitrage attack, targeting Value DeFi’s multi-stablecoin vault. The attacker deposited funds in the vault, arbitraged the funds between DAI and USDC, and exited with a multi-million payday. 

At 11:05, a statement in the community Discord acknowledged the exploit: 

We are aware of the current situation with the MultiStables vault. Please give us a bit time to check. Every other vaults and pools are working normally.

Shortly after the exploit, the attacker

Continue reading

You Might Like

Do NOT follow this link or you will be banned from the site!
Send this to a friend