Finanze Cream is currently working on a refund process after hackers took $ 18 million. DeFi protocol aims to compensate investors using 20% of their transaction fees. Cream also plans to pay off the debt with Flexa Digital Payment and several AMP participants.
How did it happen?
On August 30, 2021, Peckshield discovered an exploit in Cream Finance. According to the blockchain firm, the hack was successful due to an error in the $ AMP token.
hacker starts by creating a flash loan worth 500 ETH and uses it as collateral. Using the bug, the cybercriminal again borrows 355 ETH after initially borrowing $ 19 million AMP. process continues with 17 different transactions, causing the attacker to steal 462 AMP and 2,800 ETH. This amount is equivalent to $ 18.8 million.
Cream assures users that it is working closely with authorities to find the attacker after the event. Users with valuable information about the suspect could also receive a portion of the funds after recovery.
value of Cream and AMP tokens fell after the incident, registering a drop of 11% and 15%.
A previous attack
A similar attack took place earlier in February 2021. At that time, the attackers stole $ 37.5 million from Cream Finance. hack was possible as the suspect borrowed in USD from IronBank. After depositing the funds into IronBank, the hackers receive cySUSD in return.
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By continually manipulating Alpha Homora pools, the attackers took large amounts of WETH and USDC. Other amounts stolen from the attack include $ 5.6 million USDT and DAI worth $ 4.2 million. price of the cream tokens fell after the attack, causing a 40% drop.
About Cream Finance
Cream Finance operates as a lending protocol in the DeFi space. platform presents users with a money market ecosystem. Investors can distribute their holdings to Cream and borrow other assets after depositing. Cream Finance runs on the Ethereum blockchain and plans to scale further to the BSC network.
main goal of the protocol is to present crucial tokens that exist within the DeFi ecosystem. List stablecoins like BUSD, yCRV, USDT, and USDC. Governance tokens like SUSHI, COMP, BAL, and LEND are also available. At press time, the total value of locked assets in Curve Finance stands at $ 623.4 million.