Cream Finance Releases Post Mortem Report for the Latest Flash Loan Attack

The protocol explains that the attack was a mix of both economic and oracle exploits which took place in a single transaction.

Rekt in a Single Transaction

CREAM Finance announced the release of the post mortem report of the latest flash loan attack via a Twitter post.

As previously reported by BSC News, the DeFi lending protocol suffered yet another flash loan attack on Oct. 27 that led to over $130 million worth of tokens being stolen from the protocol’s Ethereum v1 lending markets.

“The attacker flash borrowed DAI from MakerDAO to create a large amount of yUSD tokens, while simultaneously exploiting the price oracle calculation for yUSD price through the manipulation of the multi-asset liquidity pool (containing yDAI, yUSDC,yUSDT, and yTUSD) on which the price oracle relied,” the official post mortem report explained with brevity what actually happened in the flash loan attack. 

Source: Cream Finance Medium Blog

The protocol has thanked the community for their support in handling the exploit, especially the team at Yearn Finance, around which the protocol’s ecosystem is based. They are working on repaying the lost funds beginning with a partial payment, a plan for which will be announced soon.

“Having increased the increased yUSD price per share, the attacker’s yUSD position was artificially increased, creating sufficient borrow limit to remove the vast majority of the liquidity from C.R.E.A.M. Ethereum v1 markets,” the report elaborated further.

In the report, CREAM Finance has also encouraged the hacker to reach out and attempt to return the funds of the protocol’s users, and instead, they will honor a bug bounty of 10%, i.e., $1.3 million.

About CREAM Finance

CREAM Finance is a decentralized lending protocol that caters to retail investors, institutions, and other financial services. It operates as a part of the Yearn Finance lending ecosystem. Currently, it is available to users from various blockchain networks like Ethereum, Binance Smart Chain (BSC), Polygon, and Fantom.

Find more about CREAM Finance here:

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Source : bsc.news

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