Second Time in 2 Months: DeFi Lender Inverse Finance Drained for $1.6M

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This is the second hack suffered by the DeFi protocol in a span of two months.

Ethereum-based DeFi lending protocol Inverse Finance suffered yet another hack. Peckshield was the first to observe the flash loan attack following which it revealed that the attacker carried out an exploit via price oracle manipulation.a price oracle manipulation misuses the balances of assets in the pool to directly calculate the LP token price. It is greatly conducted by the flash loan to alter the reserves in the pool.

Peckshield also revealed that the attack was allegedly performed by a bot that front-runs the original hack. In April, Inverse Finance was exploited for $15.6 million after an attacker targeted its Anchor money market and artificially skewed token prices to borrow loans against extremely low collateral.Earlier today, the platform“Inverse has temporarily paused borrows following an incident this morning where DOLA was removed from our money market, Frontier. We are investigating the incident however no user funds were taken or were at risk. We are investigating and will provide more details soon.

 

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