A short-selling exchange exploiting the weak points in decentralized finance or the DeFi protocol Harvest Finance led to siphoning away of nearly $24M in stablecoins from the project’s pools Monday, as per CoinGecko.
An attacker utilized a flash loan technique that allows the exchanger to take on great leverage without any interest to change the DeFi values for gains, as per the reports. The attack delivered FARM, the platform’s native token, struggling by 65% in less than 60-minutes, after the project’s total value locked slide down from nearly $1B before the attack, to settling down to $430M.
The individual behind the attack is a popular person in the crypto industry after leaving a great amount of personally identifiable data, as per the project’s Discord. Each of the seven bitcoin wallets holding the attacker’s assets is additionally known. Curiously, some $2.5 million was sent back to the Harvest Finance contract. The developer group said the assets would be dispersed pro-rata to affected clients.
As indicated by Etherscan, the endeavor itself was executed by a progression of arbitrage exchanges between, Curve Finance, Harvest Finance, and DeFi protocols Uniswap. The attacker started by taking out a $50 million USDC streak credit from Uniswap. At that point, they started trading among USDC and tether (USDT) to cause the two tokens’ costs to swing uncontrollably.
The cost of USDT started to drop on Harvest Finance as the attacker traded tokens to and fro. The assailant at that point traded limited USDT for stablecoins taken out in the blaze advance. According to Zerion, the assailant played out the demonstration numerous times. Each effective trade was then transformed into the ether (ETH) at that point tokenized bitcoin (WBTC and renBTC, in a specific order) and afterward at long last BTC.
Image Courtesy : Pixabay
