Avalanche Based Platypus Exploited for $8.5M in Flash Loan Attack: What Happened? On Thursday, Feb. 17, Platypus, a DeFi stablecoin swapping protocol on Avalanche, was exploited for $8.5 million. Platypus, a decentralized finance (DeFi) protocol, was the victim of a flash loan attack worth $8.5 million. The potential loss is $8.5 million, according to blockchain security firm CertiK. DeFi protocol Platypus Finance lost $8.5 million after suffering a flash-loan attack, but managed to track down the hacker and even recover some funds with the help of authorities.
Understanding the Platypus Finance Flash Loan Exploit
The exploit occurred via a flash loan attack. The hacker took a flash loan from Aave for 44M USDC, deposited it to the Platypus pool for liquidity pool tokens. The exploiter deposited those liquidity pool tokens into a smart contract to manipulate the system.
Immediate Impact: USP Depeg
The flash loan attack caused Platypus Finance’s native stablecoin, USP, to fall to 48 cents from $1. The stablecoin USP got depegged by 50% before recovering.
How the Avalanche Platypus Exploit Unfolded
Learn more about the details of the Avalanche-based Platypus Finance exploit, the role of flash loans, and the impact on the USP stablecoin. Stay informed about the latest developments in DeFi security and risk mitigation.