Value DeFi Suffers $6M Flash Loan Attack

Decentralized Finance (DeFi) protocol Value DeFi was exploited for approximately $6 million earlier Saturday, possibly due to a flash loan attack, a scheme often seen in the fast-growing DeFi sector.

"A complex attack" on Value DeFi's MultiStables vault has caused a net loss of $6 million, according to a tweet by Value DeFi on Saturday.
The exploit appears to be a flash loan attack, according to data from Etherscan, after an attacker or attackers borrowed 80,000 ether from the DeFi lending platform Aave.
Flash loans allow users to borrow funds without collateralization because the lender expects the funds would be returned instantly.
By taking advantage of the uncollateralized loans, the attackers arbitraged the funds between stablecoins dai and USDC after depositing funds in the Value DeFi's MultiStables vault.
At press time, the price of the protocol's native token value liquidity plummeted to $1.99, down 27.9% from around $2.76 before the attack, according to data from CoinGecko.
Flash loan attacks are common in the DeFi sector: Value DeFi's loss came just two days after another DeFi platform Akropolis suffered a similar hack and lost about $2 million in total.
The team behind Value DeFi did not return CoinDesk's questions by press time.

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Muyao Shen

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