Origin Defi Protocol Suffers Massive Flash Loan Attack- OUSD Stablecoin Value Plunges 85%

The OUSD stablecoin issuer, Foundation Protocol is the most recent Defi protocol to fall sufferer to a flash mortgage assault. The assault, which passed off within the early hours of Tuesday, on November 17, resulted within the disappearance of tokens price hundreds of thousands of greenbacks. Confirming the assault, one of the most mission’s leaders say they’re now operating with exchanges as a way to determine the attacker, in addition to to freeze the tokens sooner than they’re liquidated.

Finances Positioned

The Foundation Protocol assault follows a equivalent incident at Worth Defi on November 14 the place the criminals stole $6 million price of tokens. Explaining the assault in a weblog submit, Foundation Protocol Co-founder Matthew Liu insists the stolen finances were traced to a pockets, which the crew is tracking.

He additionally finds that the attacker “used each Twister Money and Renbtc to clean and transfer finances.” Consistent with Liu, there may be “nonetheless 7,137 ETH and a couple of.249M DAI sitting in one of the most attacker’s wallets.”

Even supposing the Foundation Protocol crew says it has made growth working out the assault and monitoring the glide of finances, it nonetheless warns:

We’re proceeding to paintings to check out and get well the finances. In case you are nonetheless offering liquidity on Sushiswap, we suggest that you just must take away your finances once imaginable. We additionally strongly advise that you don’t strive to shop for or promote OUSD presently.

Following the assault, the worth of the OUSD stablecoin plunged and traded at $zero.15 consistent with token on November 17. Earlier than the cost cave in, the stablecoin had persistently been buying and selling at par with the USD.

Origin Defi Protocol Suffers Massive Flash Loan Attack- OUSD Stablecoin Value Plunges 85%

Reentrancy Worm

In the meantime, Liu is going on to offer main points of the way the attackers have been ready to tug this off, even because the Foundation Protocol crew idea the contract was once protected. Consistent with Liu, the “assault was once a reentrancy worm in our contract.” He admits that their contract is most effective protected from such insects “except one in every of our supported stablecoins was once attacking us.”

After executing the assault, the criminals then “withdrew many of the stablecoins from OUSD.”

Liu’s observation provides:

They have been then ready to take further OUSD after taking flight and promote it on Uniswap and Sushiswap for USDT in next transactions.

The Foundation Protocol crew says it’s going to behavior a “thorough transaction through transaction research shall be imminent.” The crew may be pleading with the attacker(s) to go back the stolen finances after demonstrating their “awesome abilities as hackers.”

What are your ideas in this newest flash mortgage assault? Proportion your perspectives within the feedback segment underneath.

Tags on this tale
Assault, contract worm, DAI, DeFi, Defi Assault, ETH, Matthew Liu, Foundation greenback, Foundation Protocol, OUSD, Stablecoin, Stablecoin plunge, Twister money

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