Decentralized finance (DeFi) protocol Platypus has lost over $2 million in assets after suffering another flash loan exploit on its platform. Protocol suspended all of its groups in response to the attack.
According to blockchain security platform CertiK, the DeFi platform suffered three attacks, with $2.23 million seized through the exploits. On October 12, the first attack took place, extracting $1.2 million from the platform. A second attack occurred hours later, stealing assets from the platform worth $575,000. Just a minute later, the third attack occurred, with the loss of $450,000 in assets.
Due to suspicious activity in our protocol, we have taken the proactive step of temporarily suspending all groups.
Further updates will be communicated to the community in a timely manner.
Thank you for your patience and understanding during this time.— Platypus (++) (@Platypusdefi) October 12, 2023
Platypus is an automated market making (AMM) protocol that allows digital assets to be traded automatically using liquidity pools instead of more traditional markets where there are buyers and sellers. The platform raised $3.3 million in 2021 in a funding round led by the now-bankrupt Three Arrows Capital.
In a flash loan attack, merchants exploit a vulnerability that would allow them to instantly borrow crypto without providing the necessary collateral for the transaction.
Related: Exploits, hacks and scams stole nearly $1 billion in 2023: report
CertiK noted that the recent flash loan attack is the third attack on Platypus in 2023. On February 16, the protocol lost $8.5 million in a similar exploit, which also led to the decoupling of the Platypus USD stablecoin ( USP), which drove up its price. from $1 to $0.48. According to CertiK, the protocol also lost around $157,000 in a flash loan exploit in July.
In March, the DeFi protocol created a compensation portal for victims who lost their assets in the February attack. The portal was used to allow users to check how much compensation they could get from the platform and allow them to raise concerns before funds were distributed.
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