Value DeFi loses $6 million as it falls victim to Flash Loan attack

Value DeFi, the DeFi yield protocol, loses $6 Million in a flash loan attack, thus leading to the decrease in the price of its native digital token.

By · Nov 17, 2020 . 6min read

Value DeFi loses $6 million latest news

The decentralized finance yield protocol, Value DeFi, is the latest victim of the flash loan exploit. Recently, Value DeFi lost around $6 million. An anonymous attacker diverted funds from Value DeFi’s MultiStables vault utilizing a flash loan. According to Value DeFi, the MultiStables Vault has advantages like flash-loan attack prevention, fake-token attack prevention, re-entrance attack prevention. However, post this attack, it seems to possess none of these.

Attacker utilized MultiStables Vault for the attack

On November 14, 2020, an anonymous attacker administered the attack on the MultiStables vault of the Value DeFi protocol. In respect to the venture on the protocol, the attacker utilized a flash loan. Additionally, it was an uncollateralized loan option in decentralized finance (DeFi). However, flash loans allow users to borrow quickly and immediately without any obligation to present collateral.

A flash loan of about 80,000 ETH worth that amounts to roughly $37 million was carried out by the attacker from the decentralized money market protocol Aave at about 10:45 AM EST on Saturday. Moreover, utilizing these funds brought from the loan, the attacker conveyed an arbitrage attack on the MultiStables vault of the DeFi protocol and consumed millions of dollars from it. When the attacker got the flash loan from the Aave protocol, a developer of Aave Emilio Frangella, immediately notified about this huge loan via a tweet.

Value DeFi’s exploit happened after the protocol’s Friday tweet in which it alleged to have a prevention methodology for a flash loan attack. However, following the exploit, the attacker also posted a message that states “do you really know flash loan?” However, the attacker might have left this advice for mocking the protocol. 

Attacker pays back $2M to Value DeFi

Moreover, the attacker has paid $2 million back to the protocol. The outstanding funds are yet in the administration of the attacker. Following the exploit, the market has witnessed a decrease in the price value of the native digital token of Value DeFi. VALUE has suffered a price clash of over 25% over the past 24 hours. 

Recently, Decentralized finance (DeFi) protocol Akropolis lost $2M in DAI in a venture on Thursday morning. Moreover, various pools in the project’s Delphi Savings pool for yield farming were emptied of over 2 million DAI, worth approximately $2 million in a Flash Loan attack.

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