CySecurity News – Latest Information Security and Hacking Incidents
The decentralized derivatives protocol based on Fantom, DEUS Finance suffered a flash loan attack on Thursday, with the attacker making off with about $13.4 million.
According to on-chain data, the anonymous hacker carried out the assault using a flash loan at around 2:40 AM UTC. Flash loan assaults involve attackers borrowing funds with a requirement that the borrowed sum be returned in the same transaction. These are made possible with smart contracts. While flash loans are meant for arbitrage trading and enhancing capital efficiency, attackers have abused them to manipulate DeFi price data feeds — known as oracles — and carry out attacks.
The Deus hacker took a flash loan to manipulate the price oracle within one of its liquidity pools on Fantom, involving a token called DEI paired against the USDC stablecoin, security analysts at PeckShield explained in a post. The flash-loan assisted manipulation surged DEI’s price and the inflated value was then used as collateral to borrow additional capital, within the same flash loan transaction.
This additional borrowed capital was sold for USDC stablecoin, after which
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