Attack believed to be a flash loan attack, hit the Value DeFi protocol on Saturday. According to etherscan data, the attack originated when an attacker borrowed 80,000 ETH from the DeFi lending platform Aave. hence, it is likely a flash loan attack.
In response, Value DeFi Protocol announced;
“The MultiStables vault was the subject of a complex attack that resulted in a net loss of $6M. https://bloxy.info/tx/0x46a03488247425f845e444b9c10b52ba3c14927c687d38287c0faddc7471150a…
We are currently working on a postmortem and are exploring ways to mitigate the impact on our users.”
What is a flash loan attack by the way? It is an attack that occurs when a user takes advantage of an uncollateralized loan for either arbitrage or other instant services. In this case, the attackers arbitraged the funds between stablecoins dai (DAI and USDC (USDC) after depositing funds in the Value DeFi’s MultiStables vault.