Another decentralized finance (defi) protocol was breached this week after it was discovered that a hacker exploited the bilateral over-the-counter (OTC) derivatives platform Deus Finance. According to a post mortem Twitter thread published by the security firm Peckshield, Deus lost around $3 million worth of ethereum and the stablecoin DAI.
Attacker Steals $3 Million From Defi Deus Finance Protocol Via Price Oracle Exploit
The crypto community has been discussing another defi hack after a few reports indicated that the defi app Deus Finance was siphoned off for $3 million in crypto assets. Analytics and security firm defi Peckshield explained how the incident happened on Twitter.
“Deus Finance was exploited — leading to the gain of ~$3M for the hacker (The protocol loss may be larger), including 200,000 DAI and 1101.8 ETH,” Peckshield said. The defi analytics company further added:
The hack is made possible through flashloan-assisted manipulation of the price oracle that reads the price of the StableV1 AMM – USDC/DEI pair, so even normal users, unfortunately, become insolvent.
Native Token DEUS Slides More Than 6%, Deus Finance Closes Contract, Protocol’s TVL Slides 20% Since Friday
The attack against Deus Finance follows a series of defi breaches in 2022, as defi exploits continue to ravage the community’s trust. During the first week of February, it was discovered that the cross-chain bridge Wormhole suffered a $320 million hack.
However, Wormhole’s parent company replenished the stolen funds because the company “believes in a multi-channel future and that [Wormhole] is essential infrastructure. During the first week of March, an attacker breached Arbitrum’s Treasure DAO for over 100 NFTs by leveraging a market exploit. Regarding the Deus Finance hack, the team behind the project spoke to the community about the incident.
“We are aware of the recent exploit reports regarding the $DEI lending contract,” the official Deus Twitter account stated. “Contract has been closed, both $DEUS & $DEI are unaffected. Devs are working on a summary of the events, all information will be communicated once we have assessed the full situation.”
Currently, the stablecoin dei Token (DEI) has managed to stay stable, but the native DEUS protocol token has lost 6.4% against the US dollar in the last 24 hours. Despite the loss, the relatively new defi token DEUS has gained 738% in the past 30 days.
On March 12, statistics show that the total value locked (TVL) in Deus Finance was $21.71 million, but that’s been sinking since last Friday. The current TVL in Deus Finance following the hack is $17.28 million which is 20.40% lower than Friday’s TVL stats.
