Stablecoin project Origin Dollar (OUSD) has just suffered a hacker attack in which it has lost $7M, CoinDesk reports.
The hackers reportedly carried out a re-entrancy attack at 00:47 UTC which resulted in the protocol losing $7M, including more than $1M deposited by Origin and its founders and employees.
The project developers have disabled the deposits after the attack was identified. The price of OUSD, the project's native token, has dropped by 85% since the attack, according to data provided by CoinGecko.
Apparently, the hacker or hackers have used a flash loan and exploited a series of flaws in the OUSD contracts in order to initiate what is known as a "rebase." During the attack, the hacker has artificially inflated the supply of OUSD tokens within the protocol before swapping the newly issued tokens in SushiSwap and Uniswap for USDT.
This morning it was reported the DeFi project Cheese Bank has also recently lost $3.3M as a result of a hacker attack associated with flash loans.
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