Value DeFi Falls Victim To $6 Million Flash Loan Exploit

Value DeFi falls victim to $6 million flash loan exploit. After a Twitter thread on Friday highlighting the decentralized finance protocol’s flash loan exploit prevention methodology, Value DeFi seems to have been the victim of a $6 million flash loan exploit.

At approximately 10:45 AM EST, a user took out a flashloan of 80,000 ETH (over $36 million) from lending protocol Aave. Aave developer Emilio Frangella immediately called attention to the loan through a post on his Twitter profile.

According to Emiliano Bonassi, a self-described whitehat hacker and the co-founder of DeFi Italy, the attacker also sourced an additional $116 million flash loan in DAI from Uniswap.

Bonassi says that the attacker swapped the flash-loaned ETH for stablecoins, deposited part of the flash-loaned DAI into Value DeFi’s multi-stablecoin vault, and then conducted a series of stablecoin swaps between USDT, USDC, and DAI designed to exploit the pricing used by the Value DeFi vault’s withdrawal method.

At 12:12, the protocol said in a statement on Twitter that they were preparing a postmortem on the exploit, which they said led to a loss of $6 million for users. Since the attack, the value of the $VALUE token has plunged over 25%, from 2.73 to 2.01 at press time.

[image: Twitter]

 

bitcoin
Bitcoin (BTC) $ 67,631.12 0.35%
ethereum
Ethereum (ETH) $ 3,509.76 0.32%
tether
Tether (USDT) $ 1.00 0.01%
bnb
BNB (BNB) $ 607.11 0.98%
solana
Solana (SOL) $ 152.06 0.49%
staked-ether
Lido Staked Ether (STETH) $ 3,506.21 0.37%
usd-coin
USDC (USDC) $ 1.00 0.07%
xrp
XRP (XRP) $ 0.487799 1.44%
dogecoin
Dogecoin (DOGE) $ 0.143670 2.75%
the-open-network
Toncoin (TON) $ 7.64 7.21%
   
$0.0000  $0.0000  (0.00%)
   
$0.0000  $0.0000  (0.00%)
   
$0.0000  $0.0000  (0.00%)
   
$0.0000  $0.0000  (0.00%)
   
$0.0000  $0.0000  (0.00%)
   
$0.0000  $0.0000  (0.00%)