CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$22,754.00
  • ethereum
    ETH$1,636.50
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » Flash Loans Strike: Belt Finance Exploited for $6.2 Million

    Flash Loans Strike: Belt Finance Exploited for $6.2 Million

    Author: Varun GS

    Last Updated May 30, 2021 @ 16:47

    A hacker used flash loans to exploit a vulnerability in the Belt Finance 4Belt pool.

    The hacker managed to steal $6.2 million worth of BUSD, the Binance native USD-pegged stablecoin converted to ETH via 1inch DEX and partially withdrawn from Binance Smart Chain onto Ethereum.

    • This hack was comparatively benign: only $6.2 million was stolen from Belt Finance’s massive $2.6 billion total value locked (TVL).
    • The beltBUSD vault uses four strategies. A bug in the Elipsis strategy was used to leak out funds via the Venus strategy.
    • The vault sends new deposits to the most undersubscribed strategy and pays out withdrawals from the most oversubscribed strategy to create balance between the four of them. The Elipsis strategy bug creates a value miscalculation if the 3EPS pool becomes unbalanced.
    • Using flash loans, the hacker swapped about $200 million from BUSD to USDT, unbalancing the 3EPS pool and activating the Elipsis strategy bug. The 4Belt pool at this point would have overvalued the hacker’s shares, paying out an additional 0.5% profit after the conclusion of the flash loan. This resulted in a $1M profit from a single $200M flash loan transaction.
    • The hacker repeated the transaction multiple times, netting $6.2M in profit and causing $13M in total losses, since $6M in fees were paid to the 3EPS pool.
    • Along with other recent hacking indicents in the Binance Smart Chain ecosystem, this hack has led to a condemnation of ‘fork culture’ where entire codebases are replicated without thorough audits. This issue has led to several flash loan attacks over the past few weeks.
    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • defi_hack_cover
      $50M Drained From Uranium Finance: Hack or Rug Pull?
    • rugpull_cover
      First Major Rug Pull on Binance Smart Chain? Over $30 Million Drained
    • sparta_cover
      Spartan Protocol on Binance Smart Chain (BSC) Exploited: $30 Million Stolen
    Tags: Binance Smart Chain DeFi Hacking Security
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Varun GS
    More posts by this author

    Varun is a writer and computer scientist. He enjoys looking at how cryptocurrencies are reshaping the way the world thinks about economics & finance. You'll most likely find him either studying or gambling on DeFi contracts. Contact: LinkedIn

  • bitcoin
    BTC$22,754.00
  • ethereum
    ETH$1,636.50
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    What is Optimism (OP): Guide to One of Ethereum’s Layer-Two Scaling Solutions

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    Why ZK-Rollups Are the Future of Ethereum Scaling: Interview with StarkWare PM Gal Ron

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!