Table of Content
Decentralized Finance (DeFi) protocol Linear Finance issued a warning to users that it had suffered a significant exploit on Thursday.
The attack led to a catastrophic loss of liquidity for the LUSD token on Ascendex and PancakeSwap.
Linear Finance Suffers Exploit
Linear Finance, a DeFi protocol, issued an urgent update on X (formerly Twitter), warning users that its native stablecoin, LUSD, could be under an exploit attack. The announcement resulted in significant concerns in the larger crypto ecosystem and prompted the Linear Finance team to take immediate and decisive action.
“Urgent Update Re $LUSD The Linear stable coin $LUSD appears to be under an exploit attack. While the team investigates, DO NOT BUY LUSD, DO NOT TRADE $LUSD Liquidations are paused, and users’ accounts are not at risk. Further updates will follow.”
The protocol stated that all liquidations are paused until the team finishes its investigation. It also assured users that their accounts are not at risk. The LUSD stablecoin was initially trading at around $0.9883, registering a significant surge since yesterday. However, the coin dropped to an intraday low of $0.9073 following considerable security concerns.
Details Of The Attack
According to the available information, the hacker managed to exploit a vulnerability in the protocol. This allowed them to enable the illicit mining of an unlimited supply of AAVE tokens. These were traded to LUSD on the Linear exchange and then sold on PancakeSwap and Ascendex. This led to the liquidity of the LUSD being completely drained. The team issued a separate statement regarding the attack, stating,
“On 21st Sept 2023, the Linear Finance protocol was subject to an attack that resulted in the draining of all ℓUSD liquidity on both PancakeSwap and Ascendex, resulting in the price of ℓUSD going to zero. The attacker could mint an unlimited supply of ℓAAVE and subsequently traded the liquid asset to ℓUSD on the Linear Exchange before selling it on PancakeSwap and Ascendex.”
Go to Source to See Full Article
Author: Amara KhatriDid you like this?
Tip BTC Newswire with CryptocurrencyDonate Bitcoin to BTC Newswire
Scan the QR code or copy the address below into your wallet to send some bitcoin:Donate Bitcoin Cash to BTC Newswire
Scan the QR code or copy the address below into your wallet to send bitcoin:Donate Ethereum to BTC Newswire
Scan the QR code or copy the address below into your wallet to send some Ether:Donate Litecoin to BTC Newswire
Scan the QR code or copy the address below into your wallet to send some Litecoin:Donate Monero to BTC Newswire
Scan the QR code or copy the address below into your wallet to send some Monero:Donate ZCash to BTC Newswire
Scan the QR code or copy the address below into your wallet to send some ZCash:
