Flash Loans Strike: Belt Finance Exploited for $6.2 Million

The hacker managed to make a decision $6.2 million worth of BUSD, the Binance native USD-pegged stablecoin converted to ETH by activity of 1inch DEX and partially withdrawn from Binance Natty Chain onto Ethereum.

  • This hack change into comparatively benign: handiest $6.2 million change into stolen from Belt Finance’s massive $2.6 billion total worth locked (TVL).
  • The beltBUSD vault makes utilize of four programs. A bug in the Elipsis technique change into broken-down to leak out funds by activity of the Venus technique.
  • The vault sends fresh deposits to essentially the most undersubscribed technique and would possibly perhaps well simply pay out withdrawals from essentially the most oversubscribed technique to compose steadiness between the four of them. The Elipsis technique bug creates a worth miscalculation if the 3EPS pool becomes unbalanced.
  • Utilizing flash loans, the hacker swapped about $200 million from BUSD to USDT, unbalancing the 3EPS pool and activating the Elipsis technique bug. The 4Belt pool at this level would hold puffed up the hacker’s shares, paying out an additional 0.5% revenue after the conclusion of the flash loan. This resulted in a $1M revenue from a single $200M flash loan transaction.
  • The hacker repeated the transaction more than one instances, netting $6.2M in revenue and causing $13M in total losses, since $6M in charges hold been paid to the 3EPS pool.
  • Along with diversified fresh hacking indicents in the Binance Natty Chain ecosystem, this hack has ended in a condemnation of ‘fork tradition’ where total codebases are replicated with out thorough audits. This topic has ended in loads of flash loan attacks over the final few weeks.

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