Warp Finance lost almost $8 million in attack

by in DeFi News


As a result of the attack, Warp Finance's Defi Lending Protocol lost $7.7M worth of stablecoins.

“The protocol was attacked using a sophisticated flash credit scheme that permitted the user to borrow more than the collateral, resulting in the loss of creditors' funds. The team is considering recovering the roughly $ 5.5 million that is still held in collateral. After the successful recovery, the funds will be distributed among the users who have suffered losses, ”the project developers said on Twitter.

Before that, the Warp team advised users not to enter stablecoins into the protocol. Project Warp was announced at the end of October and officially launched just eight days ago, on December 9th.

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According to expert Emiliano Bonassi, the attack also involved several "flash swaps" in three pools of liquidity on the Uniswap decentralized exchange - Wrapped BTC, USDC, and USDT - as well as two-time loans on the dYdX trading platform using ether and DAI stablecoin.

Previously, attacks using urgent loans resulted in losses of $ 89 million in the Compound protocol and $ 34 million in Harvest Finance.

The Warp team has promised to publish a detailed report on the incident in the coming days.