Platypus DeFi faces flash loan attack, according to CertiK
The market maker is used to swap stable coins on the Avalanche blockchain; it has a total locked value of $46 million, according to DefiLlama.
Blockchain security firm CertiK reported on Feb. 16 that it has spotted a flash loan attack on Avalanche-based stableswap platform Platypus DeFi. The blockchain security firm posted the news in a tweet, alongside the attacker contract address.
According to the source, nearly $8.5 million has been already been moved. As a result, the Platypus USD stablecoin became depegged and dropped 52.2% to $0.478 at time of writing.
We are seeing a #flashloan attack on @Platypusdefi resulting in a potential loss of ~$8.5M.
Tx AVAX: 0x1266a937c2ccd970e5d7929021eed3ec593a95c68a99b4920c2efa226679b430
Stay Frosty! pic.twitter.com/AM2HOM5M2r
— CertiK Alert (@CertiKAlert) February 16, 2023
Platypus halted trading at 8:57 UT, according to the moderator of its Telegram feed. Platypus confirmed the hack on Twitter at 12:16 UT. It explained:
“The attacker used a flashloan to exploit a logic error in the USP solvency check mechanism in the contract holding the collateral.”
A few minutes later, the company informed its Twitter followers that it had contacted the hacker to negotiate the return of the funds.
Dear Community,
We regret to inform you that USP has been hacked, despite our best efforts and after auditing USP by 2 renown auditors (Halborn and WatchPug.eth)
We are working on a full recovering plan right now and will keep the community update.
— Platypus (++) (@Platypusdefi) February 17, 2023
A flash attack is the same method used by Avi Eisenberg when he allegedly manipulated the price of Mango Markets’ MNGO coin in October. Eisenberg said shortly after the exploit that he believed “all of our actions were legal open market actions, using the protocol as designed.”
This is developing story.