BlocksInform
Decentralized finance (DeFi) firm Platypus is working on a compensation plan for user's losses after a flash loan attack drained nearly $8.5 million from the protocol, affecting its stablecoin dollar-peg.
In a tweet about February. 18, Ornithorync revealed that it was working on a plan to compensate for the damage and instructed users not to realize their losses in the protocol, to say that this would make the management of the problem more difficult for the company. The winding-up of the assets is also suspended, in accordance with the protocol:
2/ We are working on a plan to offset the losses, thank you for NOT reimbursing your USP and realizing the losses. We could manage the damage more easily. Also, you don’t have to worry about liquidation as liquidation is paused, stability fee after the attack will not be counted
— Ornithorynca ( ) (@Platypusdefi) February 18, 2023
Depending on the company, different parties are currently involved in the process of recovering funds, including those responsible for legal execution. More details on next steps will be provided in the near future, the platypus noted.
A portion of the money is frozen in the EAA protocol. Platypus is exploring a method to potentially recover funds, which would require approval for an Aave Governance Forum reinstatement proposal.
Blockchain security firm CertiK first reported the flash loan attack on the platform through a tweet on Feb.16, along with the alleged attacker's contract address. Almost $8.5 million was withdrawn from the protocol, and as a result, the United States platypus broke away from the U.S. dollar, falling to 33 when it was drafted.
"The attacker used a lightning loan to exploit a logical error in the SPU's credit verification mechanism in the security holding agreement," the company said. A suspect was identified as a possible suspect.
A technical post-mortem analysis conducted by auditing company Omniscia revealed the attack was made possible by incorrectly placed code after it was audited. Omniscia has verified a version of the contract masterplatypusv1 of Nov. Between December 21 and 5, 2021. The version, however, "did not contain integration points with an external platypustreasure system" and thus did not contain rows of badly ordered code.
Lightning Loan Attack leverages a platform's intelligent contract security to borrow large amounts of money without collateral. Once a cryptocurrency asset has been handled on one stock market, it is quickly sold on another, allowing the operator to take advantage of price manipulation.
