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Flash loan attack on DeFi platform Popsicle Finance

Flash loan attack on DeFi platform Popsicle Finance 2

Popsicle finance, based on Defi concept, confirmed that they faced a flash loan attack at their platform. This attack resulted in a $20 million exploit.

Attacks on Defi based platforms seem much more common nowadays because every month at least one attack goes through the DeFi projects that endup in big exploitation. A recent attack on Polygon’s based platform can be seen, where the team faced a loss of $250. 

Related: Attack on Polygon Based Yield Farm, Exploited $250,000

In the morning of 4 Aug, Popsicle finance informed their Twitter followers that they face a Defi attack which resulted in a loss of around $20 million. 

1/We are aware of the current exploit to Fragola. We will investigate and publish post mortem.The other Popsicle Finance's contracts have not been exploited.If you still have funds in the ETH/AXS, ETH/SLP, ETH/LINK or any EURt Pool please remove them immediately.

— Popsicle Finance (@PopsicleFinance) August 4, 2021

Team informed that the attack was on Fragola. While other Popsicle finance contract based tokens didn’t get exploited by hackers. 

They also claimed that this Defi attack was based on Defi flash loan, which is easily available for every user under high volatility. And also they suggested to their followers to remove their tokens AXS, SLP, LINK from the pool.

“We are aware of the current exploit to Fragola. We will investigate and publish a post mortem. The other Popsicle Finance’s contracts have not been exploited. If you still have funds in the ETH/AXS, ETH/SLP, ETH/LINK or any EURt Pool please remove them immediately”

The hacker used the flash loan function and repaid all in the same transaction to borrow  $30 million USDT & $32 million in ETH. They used the repaid trick  to maximise the effect of the flash loan attack, so that they can draw huge amounts of funds from the pool.

Read also: Binance partners with Alchemy Pay to facilitate crypto fiat transactions

Source: Flash loan attack on DeFi platform Popsicle Finance

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