As if the traditional banking system isn’t causing enough troubles, a DeFi lending protocol called Euler Finance was also hit by a flash-loan attack.
The damage equates to almost $200 million worth of staked ether, USDC, wrapped BTC, and DAI.
- Euler Finance is a decentralized lending protocol that was most recently exploited for a whopping $197 million in total.
- The breakdown of the funds is as follows: $8.7 million worth of the decentralized stablecoin DAI, $34 million worth of USDC, $19 million WBTC (wrapped BTC), and $136 million worth of staked ETH.
- The hacker was able to borrow a large amount of money and drain them from the DeFi protocol through a so-called flash loan.
- The way flash loans work is they enable users to take a loan without collateralizing them, provided they are able to return the borrowed funds within the same block.