Warp.Finance Loses $8M Over Flash Loan Attack
Pexels.com
Main page News, Smart contracts, Hacker Attack, DeFi
Hot topic
Dec. 18, 2020
224 224

Warp.finance, a decentralized finance (DeFi) lending protocol, has lost up to $8 million due to a flash loan attack, the developers said on Twitter. Flash loan traditionally allows anyone to get unlimited assets for unsecured transactions, provided they are returned to the same block.

Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.

While the reported damage is $8 million in stablecoins, part of the funds worth several million dollars remains in the project contract. It remains unknown whether the organizer of the attack can steal them too.

The developers claim the project was exploited with "a complex flash loan attack."

"The team has a plan to recover approximately $5.5m that is still secured in the collateral vault. Upon successful recovery, these will be distributed to users who experienced a loss," the developers said.

Emiliano Bonassi, Marqet Co-Founder, says the attacker used multiple lenders (different Uniswap pools) and asked for a double (different assets) loan to dYdX. Warp.finance's smart contracts have been audited by the Hacken service.

DeFi Protocol Origin Loses $7M Due to an Attack

Earlier iHodl reported that the developers of the DeFi project Compounder Finance stolen $10.8 million from users. They hid a function in the smart contracts that allowed them to withdraw funds from liquidity pools to third party wallets. As a result, they have stolen $750,000 in Wrapped Bitcoin, $4.8 million in ether and $5 million in DAI, as well as other tokens with small volumes.

Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.

Read also:
Please describe the error
Close