Decentralized finance (DeFi) protocol Platypus lost over $2 million in assets after another flash loan attack on its platform. The protocol suspended all pools in response to the attack.
According to blockchain security platform CertiK, the DeFi platform suffered three attacks and lost $2.23 million by exploiting vulnerabilities. On October 12, the first attack occurred, stealing $1.2 million from the platform. A second attack occurred hours later, stealing $575,000 worth of assets from the platform. Just a minute later, a third attack occurred, resulting in the loss of $450,000 in assets.
Due to suspicious activity within our protocol, we have taken proactive steps to temporarily suspend all mining pools.
Further updates will be communicated to the community in a timely manner.
Thank you for your patience and understanding during this time.— Platypus(++) (@Platypusdefi) October 12, 2023
Platypus is an automated market maker (AMM) protocol that allows digital assets to be traded automatically using liquidity pools, rather than using traditional markets with buyers and sellers. The platform raised $3.3 million in 2021 in a funding round led by now-bankrupt Three Arrows Capital.
In a flash loan attack, traders exploit a vulnerability that allows them to instantly borrow cryptocurrency without providing the necessary collateral for the transaction.
related: Exploits, hacks and scams stole nearly $1 billion in 2023, report says
CertiK noted that the latest flash loan attack is the third attack on Platypus in 2023. On February 16, the protocol lost $8.5 million in a similar attack, which also caused the Platypus USD (USP) stablecoin to decouple, pushing its price from $1 to $0.48. The protocol also lost approximately $157,000 in a flash loan attack in July, according to CertiK.
In March, the DeFi protocol created a compensation portal for victims who lost assets in the February attack. The purpose of using this portal is to allow users to verify how much compensation they can receive from the platform and allow them to raise their concerns before funds are distributed.
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