Another decentralized finance (defi) protocol was breached this week after it was discovered that a hacker exploited the bilateral over-the-counter (OTC) derivatives platform Deus Finance. According to a post mortem Twitter thread published by the security firm Peckshield, Deus lost around $3 million worth of ethereum and the stablecoin DAI.
Attacker Steals $3 Million From Defi Protocol Deus Finance via Price Oracle Exploit
The crypto community has been conversing about another defi hack after a few reports noted the defi application Deus Finance was siphoned for $3 million in crypto assets. The defi analytics and security firm Peckshield explained how the incident happened on Twitter.
“Deus Finance was exploited — leading to the gain of ~$3M for the hacker (The protocol loss may be larger), including 200,000 DAI and 1101.8 ETH,” Peckshield said. The defi analytics company further added:
The hack is made possible due to the flashloan-assisted manipulation of price oracle that reads the price from the pair of StableV1 AMM – USDC/DEI, so that even normal users, unfortunately, become insolvent.
Native Token DEUS Slides More Than 6%, Deus Finance Closes Contract, Protocol’s TVL Slides 20% Since Friday
The attack against Deus Finance follows a series of defi breaches in 2022, as defi exploits continue to ravage the community’s trust. During the first week of February, it was discovered that the cross-chain bridge Wormhole suffered a $320 million hack.
However, Wormhole’s parent company replenished the stolen funds because the company “believes in a multichain future and that [Wormhole] is essential infrastructure.” During the first week of March, an attacker breached Arbitrum’s Treasure DAO for over 100 NFTs by leveraging a marketplace exploit. As far as the Deus Finance hack is concerned, the team behind the project has addressed the community about the incident.
“We are aware of the recent exploit reports regarding the $DEI lending contract,” the official Deus Twitter account stated. “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.”
Currently, the stablecoin dei Token (DEI) has managed to stay stable but the protocol’s native token DEUS lost 6.4% against the U.S. dollar in the last 24 hours. Despite the loss, the relatively new defi token DEUS has gained 738% in the last 30 days.
On March 12, statistics show that the total value locked (TVL) in Deus Finance was $21.71 million, but that’s been sinking since last Friday. The current TVL in Deus Finance following the hack is $17.28 million which is 20.40% lower than Friday’s TVL stats.
Tags in this story
$3 million, Arbitrum, DAI, decentralized finance, defi app, dei Token (DEI), Deus, Deus Finance, Deus Twitter account, ETH, ether, Ethereum, Ethereum (ETH), Markets, Peckshield, Peckshield post mortem, Prices, stablcoin, Stablecoin, TVL, Twitter, Wormhole
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Jamie Redman
Jamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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