Decentralized finance (DeFi) protocol Platypus has lost over $2 million in assets after suffering another flash loan exploit on its platform. In response to the attack, the protocol suspended all of its pools.
According to blockchain security platform CertiK, the DeFi platform suffered three attacks, with $2.23 million stolen through the exploits. On October 12, the first attack took place, draining $1.2 million from the platform. Hours later, a second attack occurred in which $575,000 worth of assets were stolen from the platform. Just a minute later, the third attack occurred, resulting in the loss of $450,000 in assets.
Due to suspicious activity in our log, we have proactively temporarily suspended all 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 AMM (Automated Market Maker) protocol that enables automated trading of digital assets using liquidity pools instead of the more 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 would allow them to immediately borrow cryptocurrencies without providing the necessary collateral for the transaction.
Related: Exploits, hacks and scams stole nearly $1 billion in 2023: report
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 through a similar exploit, which also led to the depegging of the Platypus USD (USP) stablecoin, driving up its price from $1 to $0.48 . According to CertiK, the protocol also lost around $157,000 to a flash loan exploit in July.
In March, the DeFi protocol created a compensation portal for victims who lost their assets in the February attack. The portal was used so that users could check how much compensation they could receive from the platform and raise their concerns before the funds were distributed.
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