Attack On Deus Finance: $3 Million Bagged in ETH and DAI

Deus Finance got compromised in a recent DeFi attack, where attackers bagged $3 Million worth of ETH and DAI, as per a data from a leading blockchain security organization.
Security organization stated that, attacker stole 200,000 DAI as well as 1101.8 ETH, equalling $3 Million after combining virtual assets.
Blockchain security organization stated that hacker funneled funds to digital asset mixer TornadoCash via Multichain (formerly Anyswap).

The $3 Million DeFi Hack

Deus Finance, a multi-asset marketplace, for decentralized finance facilities, was exploited recently when struck by hackers who then bagged $3 Million worth of ETH and DAI. This hack was a price manipulation attack, as reported by a blockchain security organization.

1/ @deusdao Deus Finance was exploited in https://t.co/bfYCQcz5rZ, leading to the gain of ~$3M for the hacker (The protocol loss may be larger), including 200,000 DAI and 1101.8 ETH
— PeckShield Inc. (@peckshield) March 15, 2022

This hack became possible due to flash loan-backed manipulation of price oracle, which reads a value from pair of StableV1 AMM – USDC/DEI, so that general folks, unfortunately, suffer insolvency, elaborated the blockchain security organization.

Attacker bagged, at a minimum of $3 Million in digital assets by compromising Deus Finance, involving 200,000 DAI as well as 1101.8 ETH.

Deus Finance team notified folks on Telegram they knew about this event, however, they did not verify damages.

The team elaborated that, developers are entirely aware of circumstances ad funds are secure. The problem is with the borrowing function. Hacker played a sleight of hand, tricking oracle contracts (unlike Muon oracle) into the pricing of liquidity pool utilizing flash loans.

Deus Finance gave assurance to users that their funds are secure.

We are aware of the recent exploit reports regarding the $DEI lending contract.
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.
— DEUS Finance DAO (@DeusDao) March 15, 2022

Just After Reaching Peak

DEUS Finance is a marketplace of DeFi facilities, which also offers a framework for others to develop synthetic share trading platforms, futures trading, and options.

Development presently comes barely one day after its indigenous digital asset DEUS attained its all-time high of $449.79. As of this writing, DEUS Finance was trading at a market value of $377.19, down by 11.34% in the previous 24 hours.

Earlier this month, Treasure marketplace got compromised, leading to the loss of folks NFTs listed on the platform. However, all stolen Non Fungible tokens were returned.

Attackers are always seeking vulnerabilities in crypto, DeFi, blockchain, etc., and feed on it, as soon as they find one, they won’t hesitate to exploit the platform.

We cannot say that there will be a kind of security that can entirely protect such hacks, there will be some cracks, which cannot be filled, but sure can be hidden from these cyberhackers.

I want to say that, developers must keep upgrading platform security, and looking for loopholes, this way, if they discover any vulnerability before the attacker, they can prevent these creatures from entering the space to exploit it.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing