Decentralized finance (DeFi) protocol Deus Finance has lost more than $6 million due to a security breach in its stablecoin DEI. According to blockchain security firm PeckShield, hackers exploited a vulnerability in the BNB Smart Chain (BSC) on May 5.
A bot launchd a hack of bscted in over $ 1.3 Million in Damages. Attackers Also Targeted the Arbitrum Network, with Arb/ETH DEPLOYMENTS COSTING O. VER $ 5 miss. Twitter using that the root cause of the token contract was a functional impitytation error. The protocol confirmed the attack, suspended all contracts and burned DEI tokens to prevent further damage. “We are currently learning about the actual backing of the DEI token,” the Deus team said on Twitter, adding that a “comprehensive recovery and redemption plan” will be developed after a full analysis of balances and snapshots.
DEI is used as a collateral mechanism for third-party tools built on top of the Fantom protocol. Its price has dropped 30 percent in the past 24 hours, according to CoinMarketCap. At the time of writing, the stablecoin is trading at $0.20, having lost its $0.30 peg. The stablecoin also lost its $1 peg after Terra crashed last year.
This is not the first time Deus Finance has been hacked. The protocol was exploited in a flash loan attack in March 2022, resulting in a loss of over $3 million in Dai and ether. At the time, PeckShield revealed that the attackers used the crypto mixer Tornado Cash to funnel the stolen funds. Deus Finance is a decentralized marketplace that allows digital and non-digital assets such as commodities to be traded on the Ethereum blockchain.
