Deus Finance suffers a $3 million loss due to price exploitation

Another DeFi exploit, another day. This time, it’s Deus Finance, a Fantom blockchain-based DeFi technology.

According to a Tuesday update from blockchain security firm PeckShield, the hacker stole over $3 million, including 200,000 DAI ($200,000) and 1101.8 ETH (approximately $2.8 million).

PeckShield, on the other hand, believes Deus Finance may have lost more than $3 million. Deus Finance is a Fantom-based DeFi protocol that provides access to global markets to users and developers.

Following the disclosure of the price exploit, monies were removed from the protocol, reducing its total value locked (TVL) from $18 million to $16.7 million as of press time.

PeckShield claimed in subsequent tweets that the hacker was able to carry out the crime thanks to Deus’ flash loan feature, which aided in manipulating the protocol’s pricing oracle. As a result, asset prices read “from the pair of StableV1 AMM – USDC/DEI, so that even normal users become insolvent.”

The current attack has, as expected, had a detrimental impact on the protocol’s native token, DEUS.

The token, which had reached a new all-time high (ATH) of $444.79 only a day before, fell as low as $286 just minutes after the attack was reported. However, as of press time, the token was trading at $317, reflecting a 23 percent loss in value in the last 24 hours.

Andre Conje and Anton Nell, two of Fantom’s primary developers, declared on Twitter earlier this month that they were quitting the DeFi space and no longer wanted to be involved with the ecosystem, including Fantom.

Although Fantom’s CEO, Michael Kong, stated that the protocols running on the platform will continue to function normally, the revelation shook several Fantom projects. Within 24 hours after the exit announcement, the platform’s TVL dropped by 20%.

The current news of Deus Finance’s adventures is undoubtedly another major setback for Fantom.

Likewise, a security compromise last month cost QiDAO, a decentralized finance protocol built on the Polygon network, $13 million.

cryptocurrency news