Hacker Targets Defi Protocol Deus Finance

This week, another decentralized finance protocol by the name of Deus Finance was breached. It was revealed by Peckshield that the over-the-counter platform was exploited by a hacker. According to the data published by the security firm on a Twitter thread, the breach saw the bilateral Defi protocol lose a whopping $3 million in terms of the DAI stablecoin and ethereum (ETH). The crypto community has been discussing the latest hack, after it became apparent that $3 million worth of crypto assets had been siphoned off by a hacker from Deus Finance. Peckshield is a security and defi analytics firm that revealed details about the incident.

According to Peckshield, the hacker had ended up gaining $3 million, but it was likely that the protocol itself had suffered from larger losses, which included 1101.8 ETH and 200,000 DAI. It was further disclosed by the defi analytics firm that the price oracle, assisted by flashloanhad made the hack a possibility because it uses a pair of StableV1 AMM for reading the price. Unfortunately, it means that even normal users are rendered insolvent. The breach of Deus Finance is the latest in a series of hacks that have been conducted on defi platforms in 2022 so far.

The constant exploitation of defi platforms is inflicting a lot of damage on the community’s trust. Wormhole, the cross-chain bridge, suffered from a hack worth $320 million in the first week of February. However, the funds that were stolen were replenished by the parent company of the platform because they are a strong proponent of a multichain future and believe their platform is part of the essential infrastructure. Arbitrum’s Treasure DAO was the second breach that happened in the first week of March. A marketplace exploit was leveraged for more than 100 NFTs.

After the hack of the Deus Finance protocol, its team decided to talk about the incident with the community. The official Twitter account of the protocol posted that they were well-aware of the recent exploits that had occurred on the platform. It further added that they had closed the contracts and both $DEI and $DEUS were unaffected. It also said that the developers were working on finding out exactly what happened and the information would be communicated after the entire situation has been fully addressed. Currently, the price of the DEI token remains stable, but there was a 6.4% loss in the value of the DEUS token, which is the protocol’s native token. It declined within 24 hours and against the USD.

However, even after the loss, the token appears to have gone up in the last 30 days by almost 788%. Statistics show that on March 12th, $21.71 million was the total value locked on the platform. But, it is also a fact that since last Friday, this value has been going down. After the hack of the Deus Finance platform, its total value locked had declined to $17.28 million, which means it has fallen by almost 20.40% from its TVL last Friday.