DeFi Platypus protocol suffers from flash loan attack – USP depeg deep

The flash loan attack caused Platypus Finance’s stablecoin to drop more than 52%. The estimated loss from the security incident is about $8.5 million, according to CertiK.

DeFi Platypus protocol suffers from flash loan attack – USP depeg

On the evening of February 16, the DeFi Platypus Finance protocol was hacked flash loan with ~$8.5 million in damages, blockchain security firm CertiK reports the incident.

The method of infiltration used by criminals is flash lending, ie hot borrowing a large amount of money from lending platforms, then using them to manipulate the price difference and profit.

According to the announcement from the project, The attacker took advantage of a vulnerability in the USP payment mechanism. Song, hCurrently all activities are paused until Platypus complete the investigation.

After the attack, the price of Platypus USD (USP) – the stablecoin of the protocol immediately dropped from the 1 USD peg, down to 0.48 USD and has not shown any signs of recovery.

USP price movement in the last 24 hours. Screenshot of CoinGecko at 10:20 AM on 17/02/2023

Platypus is an automated market maker on Avalanche. There is currently around $45.3 million in locked-in assets (TVL) on the protocol. At its heyday in March 2022, Platypus Finance saw $1.2 billion in TVL, according to DeFiLlama.

TVL volatility on Platypus Finance from October 2021 to present. According to DeFiLIama

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