Belt Finance gains $ 6.2 million leverage on Flash Loan Attack

Belt Finance is the latest decentralized financing project (DeFi) based on Binance Smart Chain, which lost millions of dollars after an unknown hacker launched a flash credit attack on the protocol. Belt Finance is a decentralized exchange similar to Uniswap, but optimized for stablecoin transfers rather than more variable crypto assets. The attack on Saturday night saw the 4Belt pool lose 6,234,753 BUSD, a US dollar pegged stablecoin built on the Binance Chain. According to the project's incident report, it was executed "with absolute accuracy" using a method that the team could not protect. 1 / We apologize for waiting, but wanted to fix this. The link to our incident report is: – Belt Finance (@BELT_Finance) 30 May 2021 Attacker using a smart contract using PancakeSwap for flash loans, beltBUSD pool and core strategy protocols. The hacker executed the contract eight times before the developers became aware of the incident and stopped the withdrawals and deposits and fixed the vulnerability. The team said that although the attack lasted only ten minutes, the beltBUSD vault was enough for users to lose 21.36% of money, while 4Belt pool users lost 5.51%. The combined cost of the attack was 50,030,452 BUSD, the transaction fee was 43,795,699 BUSD. According to Belt Finance, withdrawals and deposits will continue in the next 24-48 hours. The team is also working on a compensation plan that will be implemented within 48 hours. What is a flash attack? Flash credit attack is a type of DeFi attack where a hacker takes a flash loan from a lending protocol and uses a series of tricks to manipulate the market in his favor. Flash loans are unsecured loans that the borrower provides and repays in a single transaction. They are useful in these types of attacks because they are easy

Join the Discussion

  • BrokerEUR/USD
    IG 0.6pips (fixed) margin: 3.33%
    ETX Capital 0.6pips (variable) margin: 3.33%
  • Back to top