DEUS Finance loses $6M following stablecoin hack

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Decentralized Finance (DeFi) protocol DEUS has misplaced over $6 million resulting from a safety breach on its stablecoin DEI. The hacker exploited a vulnerability within the BNB Sensible Chain (BSC) on Might 5, in accordance with blockchain safety agency PeckShield. 

A bot initiated the hack on the BSC, which led to a lack of greater than $1.3 million. The attacker additionally focused the Arbitrum community, with ARB/ETH deployments shedding over $5 million. Twitter customers claimed the token contract had a primary implementation error as the foundation trigger.

The protocol confirmed the assault, paused all contracts, and burned DEI tokens to forestall any additional harm. “We’re presently within the technique of comprehending the precise backing of DEI tokens,” mentioned DEUS group on Twitter, including {that a} “complete restoration and redemption plan” shall be created after a full evaluation of the balances and snapshots.

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DEI is used as a collateral mechanism for third-party devices constructed on Fantom protocol. Its value dropped 30% over the previous 24 hours, information from CoinMarketCap reveals. The stablecoin is buying and selling at $0.20 on the time of writing, shedding its $0.30 peg. Final yr, the stablecoin additionally misplaced its $1 peg within the wake of Terraform Labs collapse. 

It isn’t the primary time that DEUS Finance has been hacked. The protocol was exploited in March 2022 in a flash-loan assault, leading to over $3 million losses in Dai (DAI) and Ether (ETH). On the time, Peckshield revealed the exploiters funneled the stolen funds utilizing the coin mixer device Twister money.

DEUS Finance is a decentralized market that enables digital belongings and non-digital belongings, akin to commodities, to be traded on the Ethereum blockchain.

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