DeFi Hackers Bag More Millions in Another Flash Loan Attack
Hackers have drained another DeFi lending protocol of millions thanks to a buggy smart contract and flash loans.
Key Takeaways
- Warp Finance was hacked on Dec. 17 for $7.7 million using a “double flash loan.”
- The lending protocol had a faulty price oracle mechanism which priced ETH at $141.9.
- Warp Finance developers along with the help of DeFi experts are working towards recovery of $5.5 million.
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Another flash loan attack has drained all of Warp Finance’s liquidity, costing liquidity providers (LPs) $7.7 million.
The developer team does, however, have a chance of recovering some of the funds.
DeFi Suffers Flash Loan Attack, Again
Warp Finance, a lending platform that grants stablecoins loans for collateral in cryptocurrencies, suffered a flash loan attack, costing users $7.7 million.
The attacker took a double flash loan from DyDx and used three Uniswap pools to exploit Warp Finance.
Warp Finance had implemented a faulty oracle implementation, which allowed the hacker to obtain Ethereum at $141.9 apiece. Ethereum is currently trading at $648.52.
The last swap before the DyDx loan repayment involved $48.5 million DAI for 342,252 ETH (worth $222 million).
Nevertheless, a significant portion of the amount—$5.5 million—still hasn’t reached the hands of the hacker. Code in the smart contract has locked funds, preventing them from withdrawal.
There is a possibility that Warp Finance developers can override the contract to recover the remaining funds. The chances of this are, however, very slim.
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