The Warp Finance decentralized platform was hit by a flash loan attack eight days after launch. The project team estimated losses at $7.7 million in stablecoins USDC and DAI.
1/ Approximately 2 hours ago, https://t.co/nS5MGArVoP was exploited with a complex flash loan attack which allowed the user to borrow more than their collateral value resulting in a loss of stablecoin lender funds.
— warp.finance (@warpfinance) December 18, 2020
The Warp Finance DeFi project announced the start of operations on December 9. The protocol enables the creation of capital markets for liquidity provider tokens. Warp Finance’s smart contracts have undergone an audit by Hacken.
Security expert Emiliano Bonassi noted that the attacker used a complex lending scheme involving the Uniswap DEX and DeFi platform dYdX.
Taking a look…https://t.co/UzyDETcmur
This is the second attack whish uses multiple flash liquidity,
flash swaps via Uniswap and flash loans via dYdXWe will see very complex things via @AaveAave V2 batch flash loans 🙂 https://t.co/jAjWa3WAi6
— Emiliano Bonassi | emiliano.eth (@emilianobonassi) December 17, 2020
According to Warp Finance representatives, about $5.5 million remains secured in the collateral vault. The project plans to recover this amount.
2/ The exploiter was able to remove $7.7m of stablecoins. The team has a plan to recover approximately $5.5m that is still secured in the collateral vault. Upon successful recovery, these will be distributed to users who experienced a loss.
— warp.finance (@warpfinance) December 18, 2020
«After successful recovery, they [the funds] will be distributed to the users who suffered losses», the message says.
The team recommended not to deposit stablecoins and promised to compensate losses to other customers.
In November, an unknown attacker carried out a flash loan attack on Value DeFi and withdrew $6 mln in stablecoins DAI and USDC.
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