Market News

Belt Finance Loses $50M in Flash Loan Exploit

  • Belt Finance hacked on Saturday in a flash loan.
  • With a loss of 21.36% of the fund, the BeltBUSD vault users suffered.
  • Belt’s vaults operate with a target balance for each strategy employed.

Belt Finance was hacked on Saturday in a flash loan, resulting in an overall loss of $50 million. The latest Binance Smart Chain-based decentralized finance(DeFi) protocol is Belt Finance

The critique of DeFi exploits, wrote by the Rekt Blog. It stated, “an attacker exploited a flaw in how the protocol’s vaults calculate the value of its collateral, which helped add another notch to the now infamous flash loan exploit season on the BSC”.

Moreover, Rekt’s blog added,

“Yet another fork of a fork has rolled off the conveyor belt with $6.3M falling straight into the hands of the hacker”.

Henceforth, eight flash loans made on Pancakeswap in total for $385 million Binance USD (BUSD), betrayed by Rekt.

Furthermore, in loss of 21.36% of the fund, the BeltBUSD vault users suffered. The beltBUSD vault’s Elipsis strategy was used because it is one of the undersubscribed strategies on the platform.

The swapping of stablecoins with low slippage on the Binance Smart Chain (BSC) allowed in the decentralized exchange ellipsis. The belt USD vault also utilizes capital on the BSC-based protocols Venus, Alpaca, and Fortube for yield generation.

Accordingly, on Sunday, the core developer of SushiSwap Mudit Gupta posted a Twitter action exploring the incident, explaining the flash loan attack as one of the more complex hacks”. Also, Mudit Gupta explained, Belt’s vaults operate with a target balance for each strategy employed.

Hence, when the money deposited by the user in the vault, the capital allocated to the most undersubscribed strategy. If someone withdraws money from the vault, withdraws from the most oversubscribed strategy.

Mudit Gupta stated, “basically, the issue happened because belt incorrectly integrated with Elipsis. A similar issue happened last month as well in belt finance but at that time, the problem was a buggy integration with Venus. I wonder if the belt has any bug-free integration.”

Even more, the BSC platform for lending and borrowing through the minting of synthetic stablecoins is Venus. Among many BSC DeFi protocols, Belt finance the recent one to get exploited.

Accordingly, in this year, Cream Finance, bEarn, Bogged Finance, Uranium Finance, Meerkat Finance, SafeMoon, and Spartan Protocol all suffered exploits on Binance Smart Chain (BSC).

Recommended for you

Ishwarya

A dedicated writer who shows her interest in writing all sorts of content about the cryptocurrency market in NewsCrypto. She is an enthusiastic reader and writer with passion for sharing crypto news and trends.

Related Articles

Back to top button