Value DeFi was exploited for approximately $6 million by flash loan attack

Value DeFi was exploited for approximately $6 million Saturday, possibly due to a flash loan attack, Value DeFi’s loss came just two days after another DeFi platform Akropolis suffered a similar hack and lost about $2 million in total.

Flash loans allow users to borrow funds without collateralization because the lender expects the funds would be returned instantly.

At roughly 10:45 AM EST, a user took out a flash loan of 80,000 ETH (over $36 million) from lending protocol Aave, according to data from Etherscan.

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 tweeted that the hacker 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.

Source: Bonassi

Since the attack, the value of the VALUE token has plunged over 26%, from $ 2.73 to $ 1.98 at the time of writing.

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