DeFi Protocol Platypus on Avalanche Loses $8.5M in Hack


The DeFi stablecoin Platypus Finance (USP) has lost its peg to the dollar after an attack in which an unknown person withdrew $8.5 million worth of assets from the Avalanche-based protocol.

The team reported that the hacker took advantage of an “instant loan” and a logical error in the solvency check mechanism in the collateral contract.

After losing $8.5 million, the funds in the main pool cover approximately 35% of user deposits.

The developers of the protocol approached several companies, including Binance, Tether and Circle, to freeze the stolen assets. They offered the hacker himself to negotiate a refund for the bounty.

The stablecoin of the USP project lost about 52% in price after the exploit. Theoretically, the USD-pegged coin is trading at $0.48 (CoinGecko).

DeFi Protocol Platypus on Avalanche Loses $8.5M in Hack
Data: CoinGecko.

Platypus Finance provides users with services AMM-platforms for linked assets. According to DeFi Llamathe total value of funds blocked in the protocol is $40.77 million. At the peak in March 2022, the figure reached $1.25 billion.

Recall that in 2022 the Web3 industry lost about $3.6 billion as a result of hacks. This is almost 50% more than a year earlier, Beosin experts calculated.

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