Technology

Inverse Finance exploited again for $1.2M in flash loan oracle attack

Just two months after losing $15.6 million in a price oracle manipulation exploit, Inverse Finance has again been hit with a flash loan exploit that saw the attackers make off with $1.26 million in Tether (USDT) and Wrapped Bitcoin (wBTC). Inverse Finance is an Ethereum-based decentralized finance (DeFi) protocol and a flash loan is a type of crypto loan that is usually borrowed and returned within a single transaction. Oracles report outside pricing information. The latest exploit worked by using a flash loan to manipulate the price oracle for a liquidity provider (LP) token used by the protocol’s money market application. This allowed the attacker to borrow a larger amount of the protocol’s stablecoin, Dola (DOLA), than the amount of collateral they posted, letting them pocket the difference. The attack comes just over two months after a similar April 2 exploit, which saw attackers artificially manipulate collateralized token prices through a price oracle to drain funds using the inflated prices.

Full story : Inverse Finance exploited again for $1.2M in flash loan oracle attack.

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