Another decentralized finance (defi) protocol was breached this week after a hacker was discovered to be operating bilateral over-the-counter (OTC) derivatives platform Deus Finance. According to a post-mortem Twitter thread posted by security firm Peckshield, Deus lost around $3 million worth of ethereum and stablecoin DAI.
Attacker Steals $3 Million From Defi Deus Finance Protocol Via Price Oracle Exploit
The crypto community has been discussing another defi hack after a few reports indicated that the defi app Deus Finance was siphoned off for $3 million in crypto assets. Analytics and security firm defi Peckshield explained how the incident happened on Twitter.
“Deus Finance was exploited – resulting in a gain of approximately $3 million for the hacker (protocol loss may be greater), including 200,000 DAI and 1101.8 ETH,” Peckshield noted. Analytics firm defi further added:
The hack is made possible through flashloan-assisted manipulation of the price oracle that reads the price of the StableV1 AMM – USDC/DEI pair, so even normal users, unfortunately, become insolvent.
DEUS Native Token Slips Over 6%, Deus Finance Closes Deal, Protocol TVL Slips 20% Since Friday
The attack on Deus Finance follows a series of challenge exploits in 2022, as challenge exploits continue to ravage community trust. In the first week of February, the Wormhole inter-chain bridge was discovered to have suffered a $320 million hack.
However, Wormhole’s parent company replenished the stolen funds because the company “believes in a multi-channel future and that [Wormhole] is essential infrastructure. During the first week of March, an attacker breached Arbitrum’s Treasure DAO for over 100 NFTs by leveraging a market exploit. Regarding the Deus Finance hack, the team behind the project spoke to the community about the incident.
“We are aware of recent exploit reports regarding the $DEI loan agreement,” the official Deus Twitter account declared. “The contract has been closed, $DEUS and $DEI are not affected. The developers are working on a summary of events, all information will be communicated once we have assessed the complete situation.
Currently, the stablecoin dei Token (DEI) has managed to stay stable, but the native DEUS protocol token has lost 6.4% against the US dollar in the last 24 hours. Despite the loss, the relatively new defi token DEUS has gained 738% in the past 30 days.
On March 12, stats show that the Total Value Locked (TVL) in Deus Finance was $21.71 million, but this has been declining since last Friday. The current TVL in Deus Finance after the hack is $17.28 million, which is 20.40% lower than Friday’s TVL stats.
What do you think of the recent Deus Finance hack? Let us know what you think about this topic in the comments section below.
Image credits: Shutterstock, Pixabay, Wiki Commons
Warning: This article is for informational purposes only. This is not a direct offer or the solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.