Lodestar Finance, a lending platform on Arbitrum, experienced an attack with $6.5 million in losses

Lodestar Finance, a lending platform on the layer-2 Arbitrum solution, experienced a security incident with $6.5 million in losses.

Lodestar Finance of Arbitrum system suffers from flash loan attack

According to the December 11 announcement, the attacker manipulated the price of plvGLP tokens, then used them as collateral to borrow all assets, draining liquidity on the platform.

Lodestar Finance explains the hacker pushed the plvGLP: GLP conversion rate up to 1:1.83. Next, this person deposits plvGLP into Lodestar as a mortgage to borrow all of the above assets.

Initially, the attacker may have made $5.8 million. But later, Lodestar said about 2.8 million GLP – worth $2.4 million at the time, had been restored and would be returned to affected users. The project is trying to negotiate with the hacker via DeBank over a bug bounty offer.

The above security incident is similar to the situation of Mango Markets in October, crooks also broke into the project to withdraw money from the project by manipulating the price, causing damage up to $114 million.

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