DeFi Hack: Ether worth $360,000 scored – Ethereum News

With a so-called Flashloan, a hacker managed to get hold of ether worth around $ 360,000. Flashloans are a new type of loans made possible by DeFi. It is an unsecured loan, because you do not have to deposit a pledge. However, the entire lending process (borrowing and returning) must take place in an Ethereum transaction.

The hacker has used the new technology to profit from market manipulation. The following operations all took place within an Ethereum transaction:

He took a flash loan of 10,000 ether from the DyDx trading platform and sent half of the amount to the DeFi platform Compount and thus borrowed 112 WBTC (ERC-20 Stablecoin on Bitcoin). The other half he sent to bZx, a DeFi protocol that allows leverage trading, and there he hoarded WBTC. The 112 WBTC of Compount, he has sent to Uniswap to push the price. After profiting from the falling price, he repaid the flash loan, the 10,000 ether. The transaction cost the hacker about $9.

bZx has posted on Twitter:

https://twitter.com/bzxHQ/status/1228717427413770240

 

Lending and borrowing were temporarily paused. In the next few hours there will be an update which will make the system more robust. bZx plans to compensate the injured parties. The DeFi platform wants to publish a detailed report on the events as soon as possible.