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DeFi project Beanstalk loses $182 million in flash loan attack

Decentralized finance project Beanstalk Farms suffered one of the largest ever flash loan exploits on Sunday and prices plummeted. From the report: Credit-oriented Ethereum-based stablecoin protocol It suffered a total loss of $182 million. According to blockchain security firm PeckShield, who reported the incident on Twitter, the attackers stole around $80 million in crypto tokens. According to CoinGecko’s pricing, the project’s native token, BEAN, is down about 75% from its $1 peg against the dollar. The protocol’s creators revealed their identity to Beanstalk’s Discord servers and said they were not involved in the attack. “We don’t know the identities of the individuals involved. Like all other investors in Beanstalk, we lost all assets deposited in our silos. This was significant.” It is not yet clear whether investors who have suffered a loss of funds will be reimbursed, or if so, how and to what extent. Unlike traditional loans, which require collateralized loans to be secured by collateral or a check of credit, DeFi smart contracts allow users to borrow huge amounts of stablecoins known as flash loans without any form of security. Flash lending, where the entire process of borrowing and returning a loan occurs as a single transaction on the blockchain, is quite popular among arbitrage traders.

DeFi project Beanstalk loses $182 million in flash loan attack

Source link DeFi project Beanstalk loses $182 million in flash loan attack

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