DeFi hack alert! – The week had gone a little too well. But the DeFi Warp Finance protocol finally came under attack, resulting in the loss of $7.7 million in stable corners.
7.7 million stolen in a flash loan attack
The announcement appeared on Twitter, via Warp Finance’s official account of Crypto Superstar. Indeed, earlier in the morning, the protocol was the target of an attack allowing the hacker to siphon 7.7 million dollars in stablecoins.
Once is not customary, this attack was carried out using flash loan. As a reminder, a flash loan, or instant loan, allows you to borrow funds for the time of a transaction.
A loophole, as yet undisclosed, would have allowed the attacker to borrow more funds than the amount collateralized on the protocol. It is then the liquidity pools of the protocol that were siphoned off.
3.85 million DAI and 3.92 million USDC
Shortly after the event, Nick Chong of Hex Capital posted details of the transaction on Twitter.
In fact, the attacker recovered 3.85 million DAI and 3.92 million USDC in Warp Finance’s smart contracts.
However, unlike many DeFi hackers, Warp Finance had been audited last weekend. To be continued!