- According to CertiK, three potential protocols were affected.
- CertiK chain security software, Skynet, detected an attack at 7:26 p.m. UTC on Tuesday.
On Tuesday night, a quick loan attack was carried out using Avalanche network. Specific smart contract and several liquidity providers have been targets of attack. according to certificatea blockchain cybersecurity company, the hacker made $370,000 worth of USDC.
Often, in a quick loan attack, an attacker borrows a large amount of money without providing any collateral, which is an abuse of the security of the target platform’s smart contract. Then, to make money, they engage in arbitrage trading.
They do this by artificially inflating the price of a crypto-asset on one trading platform before quickly offloading it onto another. In most cases, the procedure is accurate and timely, and attackers will attempt it several times before giving up.
Three possible protocols are affected
According to CertiK, there were three potential protocols affected by the recent avalanche vulnerability. Even AMM Curve Finance, Nereus Finance and the DEX Trader Joe platform were not exempt. CertiK’s security software, Skynet, discovered the attack at 7:26 p.m. UTC on Tuesday.
In the recent past, many cryptocurrency heists have involved quick loans. For example, in April, hackers stole more than $180 million from the Ethereum-based platform Beanstalk. In order to obtain such a large amount of Stalk, Beanstalk’s original rule token, it appears that the attacker(s) took a quick loan on the lending site Aave. These Stalk coins gave attackers enough leverage to adopt a corrupt ruling proposal to quickly move all of the protocol’s assets into a personal Ethereum wallet.
Avalanche did not perform well on the DeFi front. For example, the total value of the secured assets on its platform has decreased over the past several months and, as of press time, has not exceeded $1.7 billion, a daily drop of 4.1%.
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