Platypus, a decentralized finance (DeFi) protocol, has suffered yet another flash loan exploit, resulting in the loss of over $2 million in assets. In response to the attack, the protocol has temporarily suspended all of its pools.
According to CertiK, a blockchain security platform, the DeFi platform experienced three attacks, resulting in a total loss of $2.23 million across the exploits. The first attack occurred on October 12 and resulted in $1.2 million being taken from the platform. Shortly after, a second attack took place, resulting in the theft of $575,000 worth of assets. Just a minute later, the third attack occurred, leading to the loss of $450,000 in assets.
Platypus is an automated market maker (AMM) protocol that enables the automatic trading of digital assets using liquidity pools instead of traditional markets. The platform, which raised $3.3 million in a funding round led by Three Arrows Capital in 2021, suspended its pools due to the suspicious activities surrounding the recent attacks.
The losses incurred by the DeFi platform were a result of a flash loan exploit. This type of attack involves traders exploiting a vulnerability that allows them to borrow cryptocurrency instantly without providing the required collateral for the transaction.
This recent flash loan attack marks the third attack on Platypus in 2023, as highlighted by CertiK. On February 16, the protocol suffered a similar exploit, resulting in a loss of $8.5 million. This attack also caused the de-pegging of the Platypus USD stablecoin, causing its price to plummet from $1 to $0.48. Additionally, CertiK reported that the protocol lost approximately $157,000 in a flash loan exploit in July.
In an effort to compensate victims who lost their assets in the February attack, Platypus introduced a compensation portal in March. This portal allowed users to verify the amount of compensation they were entitled to and express their concerns before the distribution of funds.
Flash loan exploits have become increasingly prevalent in the DeFi space, with platforms being targeted for their vulnerabilities. The Platypus attacks serve as a reminder of the importance of robust security measures to protect user assets and the necessity for constant vigilance within the DeFi community.
As the investigation into the recent attacks on Platypus continues, the platform is expected to provide further updates to the community in a timely manner. Users are encouraged to remain patient and understanding during this time of heightened vulnerability in the DeFi landscape.