Crypto Lender Euler Finance Falls Prey To $197 Million DeFi Flash Loan Attack
DeFi Assets Stolen In A Flash
Flash loan attacks are common in the DeFi space as hackers often use this method to exploit loopholes in the smart contract codes deployed by protocols. During such crypto hacks, the attacker borrows a massive amount of assets without posting sufficient collateral, or any collateral in some cases.
After, the attacker will drain the borrowed funds from the protocol and complete the exploit. Flash loan attacks also has a drawback since the exploiter must quickly repay the loan or suffer significant losses.
Euler Finance Joins Exploited DeFi Protocols
Euler Finance was the latest DeFi protocol rocked by an exploit months after the decentralized ecosystem had its worst month of attacks in October 2022. Reports said over $3 billion was stolen from decentralized projects.
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