Cream Finance may have just suffered a major hack on Wednesday, which is said to have lost more than $100 million in funds due to the massive instant loan attack.
The fast lending attack on a decentralized lending platform, first identified by blockchain data analytics firm PeckShield, who said the stolen funds included payment provider tokens. Cream account and several other Ethereum-based tokens.
What this flash loan attack means for Cream Finance
First, for a flash loan attack to occur, an attacker must exploit vulnerable smart contracts to create their own arbitrage opportunity. Usually, this is done by simultaneously buying and selling the same asset on different markets to profit from small differences in the quoted price of that asset.
However, this is not the first time Cream Finance has been targeted by attackers. Back in August, there was another $18 million quick loan hack of the same protocol.
According to industry reports, the total value of Cream locked at this point is over $1.5 billion,
Although the Cream Finance protocol has Notification Its Twitter followers that the quick loan is currently under investigation, but its users are not.
CreamFinance wrote:
We are investigating mining on CREAM v1 on Ethereum and will share updates as soon as they become available.
– Cream Finance (@CreamdotFinance) October 27, 2021
Even with all the praise that has greeted DeFi decentralized finance in recent times, especially for the change it has brought to traditional finance and how it has improved its inclusion. financial inclusion, the industry’s record with regard to consumer protection is really nothing worth recording.
As of September 16, the total amount of mining has been 63, with the loss of nearly $1.2 billion, according to CryptoSec. But this mining run by Cream Finance turned out to be one of the biggest.
Following the news of the mining, the value of Cream Finance’s CREAM token crashed, dropping more than 26% to $115.47.