MultiStables Vault, which is the part of Value DeFi that was attacked, was just launched on Friday.
While Value DeFi referred to this as a “complex attack,” Ethereum developer Hayden Adams, who is best known as the inventor of decentralized exchange Uniswap, took an opposing view. On Twitter, Adams stated, “It’s easy to fall in the trap of thinking these exploits are galaxy brain moves no one could anticipate or prevent but that’s very rarely the case. It’s usually projects hand waving their security properties.”
According to Adams, Value DeFi used Curve Finance as an oracle for a new application, and the attacker used flash loans and flash swaps to manipulate that oracle.
According to Decrypt, the crypto media site was banned from the Value DeFi Telegram group during the aftermath of the attack. Decrypt also pointed out that the MultiStables Vault from Value DeFi was supposed to have preventative measures in place to guard against the type of attack that was used to steal funds from users.
Akropolis, which is another DeFi application built on Ethereum, suffered a similar attack earlier this week in which around $2 million was lost.
Kyle is the creator of The Crypto Feed. Before founding The Crypto Feed, Kyle was a longtime freelance Bitcoin writer at places like Forbes and Bitcoin Magazine.