Deus DAO Suffers Another Flash Loan, Loses Over $16 Million

image 2022 04 28 185629326

Deus Finance DAO has suffered yet another exploit, losing $13.4 million worth of ETH to a hacker less than a month after being hacked in a similar flash loan attack for around $3 million.

Deus DAO lost more than $16 million to the two attacks

Blockchain security firm PeckShield first reported the exploit, claiming that while the hacker made about $13.4 million, the protocol may have lost more.

According to PeckShield, the hacker used a flash loan to manipulate the price oracle and drive up DEI’s value. The hacker then used the inflated DEI as collateral to borrow and pump out the protocol. The March exploit was accomplished using the same method.

The hacker initially pulled 800 . in ETH by Tornado Cash to imitate the exploit and transfer the money via Multichain to . to send Phantom† After stealing the money, the hacker paid the flash loan and sent the proceeds to his wallet.

It now appears that the hacker is taking most of the proceeds from the walletas there was only 0.85 ETH in the wallet at press time.

Response from the Deus team

In its initial response, Deus Finance called on DAO for calm after revealing that its team was working on it. The protocol claimed that all user funds were safe and no user was liquidated because of the exploit.

The multi-chain decentralized derivatives platform also stated that the $DEI peg has recovered and will provide more updates soon.

The founder, the pseudonym Lafachief, do not agree with with how PeckShield described the exploit.

He added that the protocol uses “Muon Oracles not onchain” and that the hacker “could manipulate Muon’s VWAP prices”. He went on to say that the attacker “basically traded “false” from ~2M USDC to 100k DEI” and “manipulated the Muon VWAP price with it.”

Lossless DeFi, a crypto hack mitigation tool, also offered to help Deus catch the hacker if they were willing to cooperate.

However, some users are concerned about the platform’s security as the same exploit happened twice in less than a month.

get a Side on the crypto market

Join CryptoSlate Edge and get access to our exclusive Discord community, more exclusive content and analysis.

Analysis on the chain

Price snapshots

More context

Join now for $19/month Discover all the benefits

Leave a Reply

Your email address will not be published. Required fields are marked *