{"id":695,"date":"2022-06-18T17:46:03","date_gmt":"2022-06-18T17:46:03","guid":{"rendered":"https:\/\/cryptoteambuild.com\/blog\/inverse-finance-lost-1-2m-in-a-flash-loan-oracle-exploit-details\/"},"modified":"2022-06-18T17:46:03","modified_gmt":"2022-06-18T17:46:03","slug":"inverse-finance-lost-1-2m-in-a-flash-loan-oracle-exploit-details","status":"publish","type":"post","link":"https:\/\/cryptoteambuild.com\/blog\/inverse-finance-lost-1-2m-in-a-flash-loan-oracle-exploit-details\/","title":{"rendered":"Inverse Finance Lost $1.2M in a Flash Loan Oracle Exploit; Details"},"content":{"rendered":"
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You are here: Home<\/span><\/a><\/span> \/<\/span> News<\/span><\/a><\/span> \/<\/span> Crypto Scam<\/span><\/a><\/span> \/<\/span> Inverse Finance Lost $1.2M in a Flash Loan Oracle Exploit; Details<\/p>\n

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Vignesh Karunanidhi<\/span><\/a><\/span> <\/p>\n<\/header>\n

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Inverse Finance was targeted with a flash loan hack merely two months after losing $15.6 million in a price oracle tampering assault. The attackers made off with $1.26 million in Tether (USDT) and Wrapped Bitcoin (wBTC).<\/p>\n

A flash loan is a sort of crypto loan that is usually acquired and returned in a single transaction, while Inverse Finance is an Ethereum-based decentralized finance (DeFi) system.<\/p>\n

The most recent vulnerability was manipulating the pricing oracle for a liquidity provider (LP) token used by the protocol’s money market application with a flash loan. <\/p>\n

This permitted the attacker to borrow a higher quantity of Dola (DOLA), the protocol’s stablecoin, than the sum of collateral they submitted, allowing them to steal more of the protocol’s stablecoin.<\/p>\n

Inverse Finance suffered a similar attack<\/h2>\n

The hack follows just over two months after an identical April 2 exploit<\/a>, in which attackers<\/a> used a pricing oracle to intentionally alter collateralized token prices in order to drain cash.<\/p>\n

Inverse Finance responded to the attack by temporarily suspending borrowing and removing DOLA from the money market while it examined the event, claiming that no user funds were at risk.<\/p>\n

It was eventually revealed that the incident solely harmed the attacker’s deposited collateral and that it only acquired a liability to itself due to the stolen DOLA. The attacker was asked to return the funds in exchange for a “generous prize.”<\/p>\n

The attackers made a total of 99,976 USDT and 53.2 wBTC from the attack, which they converted to ETH before sending through the cryptocurrency mixer Tornado Cash to hide their illicit earnings.<\/p>\n

Attackers made off with $15.6 million in Ether (ETH), wBTC, Yearn.Finance (YFI) and DOLA in the previous attack in April.<\/p>\n

In March, the DeFi marketplace Deus Finance was hacked, with attackers altering a price pairing within an oracle, resulting in a gain of 200,000 Dai (DAI) and 1101.8 ETH, valued at over $3 million at the time.<\/p>\n

Beanstalk Farms, a credit-based stablecoin system, lost all of its $182 million in collateral in a flash loan assault triggered by two malicious governance proposals, which ultimately drained the protocol’s money.<\/p>\n<\/div>\n<\/article>\n<\/div>\n

Read More<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

You are here: Home \/ News \/ Crypto Scam \/ Inverse Finance Lost $1.2M in a Flash Loan Oracle Exploit; Details June 17, 2022 by Vignesh Karunanidhi Inverse Finance was targeted with a flash loan hack merely two months after losing $15.6 million in a price oracle tampering assault. The attackers made off with $1.26 million in Tether (USDT) and Wrapped Bitcoin (wBTC). A flash loan is a sort of crypto loan that is usually acquired and returned in a single transaction, while Inverse Finance is an Ethereum-based decentralized finance (DeFi) system. The most recent vulnerability was manipulating the pricing […]<\/p>\n","protected":false},"author":1,"featured_media":696,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[6],"tags":[71,276],"_links":{"self":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts\/695"}],"collection":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/comments?post=695"}],"version-history":[{"count":0,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/posts\/695\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/media\/696"}],"wp:attachment":[{"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/media?parent=695"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/categories?post=695"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptoteambuild.com\/blog\/wp-json\/wp\/v2\/tags?post=695"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}