- It is still unclear what vulnerability was exploited to launch the assault.
- The attacker employed a chain of six separate flash loans.
According to audit platform BlockSec, the decentralized finance (DeFi) platform Euler Finance was the victim of an attack worth over $196.9 million. Hackers made off with $135.8 million worth of Staked Ethereum (stETH), $33.8 million worth of Circle’s stablecoin USDC, and $8.7 million worth of the decentralized stablecoin DAI.
Euler Finance is a cryptocurrency lending and borrowing platform where participants earn interest for staking additional assets on the system. According to a BlockSec representative, it is still unclear what vulnerability was exploited to launch the assault. Nonetheless, the attacker employed a chain of six separate flash loans. A flash loan is a kind of crypto-native loan in which the borrower and lender complete their transaction simultaneously.
Native Token Takes a Hit
Some have said that the “donateToReserves” feature of the smart contracts used in the project is its weak point. According to Euler’s analysis of the market, there are around $200 available for loan in the WBTC market and $208 in the USDC market. Around 11 a.m. CEST, all available DAI and stETH were wiped out. There is currently a rendering fault on the markets page.
Euler said via Twitter that the team is aware and is now engaging with security experts and law enforcement. Once it obtains further details, it will provide an update.
Total value locked (TVL), or the worth of all the assets in the app before the hack, was $237.9 million, as reported by DeFi Llama. As per data from CMC, the DeFi project’s native token EUL has dropped by 50% in the past hour.
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