After posting a (since deleted) Twitter thread on Friday outlining the flash loan prevention strategy developed by Value DeFi, the protocol became a target of a flash loan exploit of $6 million.
Value DeFi was hacked for around $6 million earlier Saturday, likely due to a flash loan attack, a scheme frequently seen in the fast-growing DeFi market, for decentralized finance (DeFi) protocol.
Another DeFi Flash Loan Hack
According to a tweet by Value DeFi on Saturday, “a complex attack” on Value DeFi’s MultiStables vault has incurred a net loss of $6 million.
As per CoinGecko, the price of the native token worth liquidity of the protocol plunged to $1.90 at its bottom, down 27.9 percent from about $2.76 before the assault.
In the DeFi market, flash loan attacks are common: Value DeFi’s failure came only two days after another Akropolis DeFi site experienced a similar hack and lost a total of around $2 million. The exploit has been applied to numerous DeFi protocols.
According to Etherscan results, after an attacker or assailants borrowed 80,000 ether from the DeFi lending platform Aave, the exploit appears to be a flash loan assault.
Without collateralization, flash loans encourage users to borrow money and the lender requires the funds to be repaid immediately.
The attackers arbitrated the funds between stablecoins dai (DAI, -0.07 percent) and USDC (USDC, +0.10 percent) by taking advantage of the uncollateralized loans, after depositing funds in the MultiStables vault of Value DeFi.
Value DeFi joins Harvest Finance and Akropolis as the latest coins to suffer a flash loan + arbitrage attack. It is likely that these tokens will not be the last, as DeFi protocols scramble to protect themselves from this particular vulnerability.
Value DeFi Protocol in a Nutshell
Value DeFi Protocol is a network that provides Decentralized Finance with a suite of goods that strive to offer justice, true value, and creativity.
Value DeFi focuses on the following principles:
- Increasing accessibility to farming yields
- Providing on-chain governance voting
- Reward our stakeholders with scalable, profitable and streamlined vault strategies
- Safeguard the funds of our society by integrating an insurance treasury.
Value DeFi is focusing on the following token projects:
- Value Token, the Value DeFi Protocol’s governance token, which helps holders to manipulate the protocol and receive a share of the revenues generated from the network goods.
- Value Liquid, an integrated market-maker and decentralized exchange, helps anybody with adjustable ratio pairs and swap fees to build custom liquidity pools.
- Profit Vaults are yield aggregators that utilize different techniques to optimize the return of interest rates on the investments of users.
The Value Token enables investors to bring their value into the Vault of Governance. This encourages governance participation, reflected by the holders by voting, in making governance decisions.
This entails voting on initiatives and their conditions, token pollution schedules, and distribution of the platform’s revenues.
In addition to enabling engagement by voting, investors who have positioned their value in the Governance Vault already earn 14% of Value Vaults’ benefit and 33% of Value Liquid’s swap fees from transactions. Both ratios are prone to Governance Voting modifications.