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The DEUS staff stated that consumer funds had been secure.
DEUS Finance Suffers Flash Mortgage Exploit
DEUS Finance DAO is the newest DeFi protocol to endure a significant assault.
The multi-chain DeFi venture, which runs on Ethereum, Fantom, BNB Chain, and various different Layer 1 networks, was focused in a flash mortgage exploit early Thursday morning.
On-chain data exhibits that an attacker leveraged a flash mortgage to focus on a DEUS liquidity pool on Fantom. Pioneered by the early Ethereum DeFi venture Aave, flash loans give DeFi customers the power to borrow an infinite quantity of capital with out offering any collateral so long as they pay again the mortgage in the identical transaction. Whereas flash loans are an instance of DeFi innovation, they’ve been controversial as a result of outstanding position they’ve performed in lots of multi-million greenback hacks.
This assault follows an analogous playbook to many different current incidents. As blockchain safety agency PeckShield famous in a tweet storm, the hacker used the mortgage to control a value oracle in order that they may artificially inflate the worth of DEUS’ DEI stablecoin. They then used the DEI as collateral to borrow extra capital, and executed a commerce for USDC. By the point they paid off the flash mortgage, they had been left with about $13.4 million.
After executing the flash mortgage assault, the hacker moved the takings from Fantom to Ethereum and used Twister Money, an Ethereum-based privacy-preserving protocol popularly utilized in DeFi hacks, to siphon the funds to a “clear” handle.
DEUS has since posted an update, saying that consumer funds are secure and DEI lending has been paused. It additionally stated it is going to observe up with extra particulars later. After affected by a $3 million flash mortgage exploit solely final month, it is going to have some explaining to do.
Disclosure: On the time of writing, the writer of this piece owned ETH, AAVE, FTM, and several other different cryptocurrencies.