Hackers exploited decentralized finance (DeFi) platform Euler Finance early Monday morning to steal practically $200 million price of cryptocurrency, in accordance with blockchain safety agency SlowMist.
Euler Finance, a non-custodial lending protocol constructed on Ethereum (ethereum), Admitted Word that Monday’s hack labored with regulation enforcement, unbiased auditors, and safety companies.
clarify sluggish mist,
“The attacker used a flash mortgage to deposit funds, then used it twice to set off the liquidation logic, donate the funds to the reserved deal with, and self-liquidate to get better the remainder of the property.”
Noting that hackers donated funds to reserved addresses with out present process liquidity checks, the blockchain safety agency stated it “created a mechanism that might straight set off a comfortable liquidation.”
“When the comfortable liquidation logic is triggered by excessive leverage, yields rise and the liquidator transfers solely a portion of the legal responsibility to itself, permitting the liquidator to acquire a lot of the collateral funds from liquidated consumer accounts. grew to become.
Provided that the worth of the collateral funds exceeded the worth of the debt (which was solely partially transferred as a result of comfortable liquidation), the liquidator handed a well being issue test (checkLiquidity) and will withdraw the acquired funds. is prepared. ”
in accordance with look on chainEuler misplaced about 96,833 ETH, price about $166 million on the time of writing, and $34 million price of USD-fixed stablecoins. Huge.
within the 12 months 2023 Crypto Crime ReportChainalysis, a blockchain information platform, notes that hackers stole a complete of $3.8 billion from cryptocurrency companies final 12 months.hackers are Majority of that whole by focusing on DeFi protocols.
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