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.
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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.
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.
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