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) $ 23,174.21 0.16%
ethereum
Ethereum (ETH) $ 1,590.59 0.66%
tether
Tether (USDT) $ 1.00 0.09%
usd-coin
USD Coin (USDC) $ 1.00 0.06%
bnb
BNB (BNB) $ 307.84 0.42%
xrp
XRP (XRP) $ 0.412983 0.50%
binance-usd
Binance USD (BUSD) $ 1.00 0.12%
cardano
Cardano (ADA) $ 0.384747 3.24%
dogecoin
Dogecoin (DOGE) $ 0.089481 1.40%
matic-network
Polygon (MATIC) $ 1.16 0.48%
S&P 500  ^GSPC 
$4,070.56  $10.13  (0.25%)
Dow Jones Industrial Average  ^DJI 
$33,978.08  $28.67  (0.08%)
NASDAQ Composite  ^IXIC 
$11,621.71  $109.30  (0.95%)
Russell 2000  ^RUT 
$1,911.46  $8.39  (0.44%)
Crude Oil Mar 23  F*CL.NYM 
$79.38  $1.63  (-2.01%)
   
$0.0000  $0.0000  (0.00%)