Platypus Finance (USP), the stablecoin of Avalanche-based DeFi protocol Platypus, has lost its parity with the dollar after the project suffered a hacker attack that resulted in the loss of $8.5 million in protocol assets.
The team has reported that the hacker exploited a "flash loan" and a logical error in the creditworthiness check mechanism in the collateral contract.
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After losing $8.5 million, the funds in the main fund cover approximately 35% of user deposits.
The developers of the protocol have contacted several companies, including Binance, Tether and Circle, to get them to freeze the stolen assets.
The project has offered the hacker himself to negotiate a reward for returning the funds.
USP, the project's stablecoin, has lost about 52% of its price following the attack.