{"id":11673,"date":"2022-06-18T14:20:34","date_gmt":"2022-06-18T14:20:34","guid":{"rendered":"https:\/\/nftandcrypto-news.com\/crypto\/inverse-finance-exploited-again-for-1-2m-in-flash-loan-oracle-attack\/"},"modified":"2022-06-18T14:20:36","modified_gmt":"2022-06-18T14:20:36","slug":"inverse-finance-exploited-again-for-1-2m-in-flash-loan-oracle-attack","status":"publish","type":"post","link":"https:\/\/nftandcrypto-news.com\/crypto\/inverse-finance-exploited-again-for-1-2m-in-flash-loan-oracle-attack\/","title":{"rendered":"Inverse Finance exploited again for $1.2M in flash loan oracle attack"},"content":{"rendered":"
<\/p>\n
Just two months after losing $15.6 million in a price oracle manipulation exploit, Inverse Finance has again been hit with a flash loan exploit that saw the attackers make off with $1.26 million in Tether (USDT) and Wrapped Bitcoin (wBTC).<\/p>\n
Inverse Finance is an Ethereum-based decentralized finance (DeFi) protocol and a flash loan is a type of crypto loan that is usually borrowed and returned within a single transaction. Oracles report outside pricing information.<\/p>\n
The latest exploit worked by using a flash loan to manipulate the price oracle for a liquidity provider (LP) token used by the protocol\u2019s money market application. This allowed the attacker to borrow a larger amount of the protocol\u2019s stablecoin, Dola (DOLA), than the amount of collateral they posted, letting them pocket the difference.<\/p>\n
The attack comes just over two months after a similar April 2 exploit<\/a>, which saw attackers artificially manipulate collateralized token prices through a price oracle to drain funds using the inflated prices.<\/p>\n In response to the attack, Inverse Finance temporarily paused borrowing and removed DOLA from the money market while it investigated the incident, saying no user funds were at risk.<\/p>\n 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.<\/p>\n\n