DeFi project Cheese Bank lost $ 3.3 million to analysts …

Cheese Bank DeFi Project Attack Lost $ 3.3 Million

Analysts of company PeckShield Reveals 6 Attack on Cheese Bank’s DeFi Project November. Experts say they found out about attack in time study the malicious acts carried out at help instant loans on blockchain Ethereum.

Cheese Bank is positioned as a decentralized autonomous digital bank based on Ethereum. The attack on him became possible due to a bug in the mechanisms for assessing the price of assets when help oracle automated market maker. As a result, $ 3.3 was withdrawn from the platform million in stablecoins USDC, USDT and DAI.

“During a series of attacks, we observed how cybercriminals used loans for instant receipt, exchange, deposit and re-receipt of large amounts in order to manipulate the price of a single token on one exchange, “write PeckShield.

During the attack, the attacker received instant loan at 21 000 ETH with dYdX platform, after what did the operations in the pools liquidity on exchange Uniswap. So he was able to take possession of the tokens to provide them as collateral on the Cheese Bank. Subsequently, he bought a large volume of CHEESE for 20,000 ETH on Uniswap, thus manipulating the price. token, what opened opportunities for withdrawal of all assets from pools USDC, USDT and DAI.

DeFi project Cheese Bank lost $ 3.3 million to analysts ...

“Since the oracles of automated market makers have often been targeted in recent attacks, we urge you to be especially careful, if you refer to their prices because they are easy to manipulate, ”conclude PeckShield.

DeFi project Cheese Bank lost $ 3.3 million to analysts ...

Cheese Bank developers, co his parties write that a bug in the protocol was eliminated, but some platform functions are still not available due to accompanying risks.