Flash Loan Attack Costs Ethereum-based Saddle Finance $10 Million

  • The metapools have been put on hold by Saddle.
  • DeFi project Beanstalk Farm was recently hacked by unknown hackers.

Data from Peck Shield, a blockchain security startup, shows that the Ethereum-based DeFi protocol Saddle Finance lost around $10 million in a flash loan assault on Saturday. The popularity of Decentralized Finance (DeFi) and the threat of flash loans against it are inversely related. There has been a rise in DeFi hacks over the last several years as DeFi platforms have become more popular.

Flash Loan Attack on the Rise

According to reports, the Flash loan assault netted roughly $10.2 million in profit. Multiple transactions may be seen on the wallet address used in the breach. USDC was exchanged into sUSD at about $2.9 million USDC. Curve finance was traded for DAI and USDT for $318k and $343k. A total of 557 Ethereum (ETH) were exchanged for $1.6 million USDC (ETH).

 sUSD has been found to be the source of the issue. In the meanwhile, the metapools have been put on hold by Saddle. While individual asset withdrawals are prohibited, the pool balance is still available for withdrawal. According to Saddle Finance, white hat hackers were able to recover almost $3.8 million of the stolen funds but are still waiting for the money back.

Flash loan assaults are among the most common things the DeFi platform sees daily. When it comes to assaults, they are the most cost-effective since they are a simple pump-and-dump strategy. DeFi project Beanstalk Farm was recently hacked by unknown hackers, who stole $180 million in digital assets. According to reports, this was reportedly the 4th greatest vulnerability using a flash assault. Ethereum (ETH), BEAN stablecoin, and other assets were used to steal the stolen funds from the protocol.

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