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 https://t.co/ngnHIoNKpi

— Emilio Frangella (@The3D_) November 14, 2020

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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

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