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DeFi Protocol Platypus Finance Loses Over $2M in Another Flash Loan Attack: Report

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Decentralized finance protocol Platypus Finance has suffered yet another flash loan exploit that resulted in the loss of over $2 million.

“Due to suspicious activities in our protocol, we have taken the proactive measure of temporarily suspending all pools. Further updates will be communicated to the community in a timely manner. Thank you for your patience and understanding during this time.” The platform secured $3.3 million in funding during a round spearheaded by Three Arrows Capital in 2021, which has since declared bankruptcy.

During this incident, the attackers exploited a vulnerability within Platypus Finance’s native stablecoin’s USP solvency check mechanism, deceiving the smart contracts into believing that USP was fully backed.

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