As attacks on decentralized financial applications continue, it has begun to emerge that a significant part of them is caused by vulnerabilities and deficiencies in DeFi protocols. The Value DeFi protocol was also hacked yesterday, and it caught on just as it introduced a new feature.
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Value DeFi Protocol Hacked
First FOMO, Then FUD
Value DeFi Price Crashed Hard
Value DeFi Protocol Hacked
Value DeFi introduced its "most innovative features" namely the MultiStables Vault in its post published on the evening of November 14th. The developers, who stated that the users' funds will always be safe in this safe-like protocol, received a lot of appreciation and applause. However, the fear came soon after this announcement and the protocol was attacked precisely from this point.
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Value DeFi developers stated in their post on the night of November 14 that the MultiStables Vault protocol was subjected to a complex attack and that there was a loss of at least $ 6 million. Expressing that they are constantly trying to research and bring back the funds, the developers stated that they aim to mitigate the effect of this on users.
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First FOMO, Then FUD
When looking at the Telegram group of the protocol, it was seen that almost all users were grieved and anxious after the morning FOMO. It is stated that the attack was carried out using the fast loan method, also known as Flash Loan. In order to influence the price of the relevant tokens, loans are drawn from DeFi protocols, which are taken at a lower price, then the loan is paid and net profit is obtained. The MultiStables Vault was allegedly preventing exactly this.
In the introduction, it was emphasized that this protocol has "special protection against flash loan attacks", "counterfeit token attacks prevention mechanism" and "technology to prevent re-entry attacks". However, the fact that all of them were used in this attack changes the events.
Value DeFi Price Crashed Hard
The user named Justin Bebis, who is on Value DeFi's Discord and Telegram channels, describes it as "the saddest hacking of the crypto currency history and industry". Stating that the team consists of wonderful people, Bebis still emphasizes that everything is over due to this attack. It is stated that Value DeFi developers and community managers emphasize that they will not give up and will continue to develop.
The token price, on the other hand, fell more than 50% after this incident, and it seems that everyone is starting to run away from selling what they have.
