Value DeFi Hacked For 7.4 Million DAI via Flash Loan
Decentralized finance yield aggregating protocol Value DeFi has been hacked for $7.4 million worth of DAI in a flash loan attack that borrowed 80,000 ETH from the Aave protocol.
Flash loans as taken and repaid within the same transaction block and, as such, do not need the use of collateral. As part of the exploit, the attacker returned $2 million to Value DeFi and kept $5.4 million for themselves.
The attack left a provocative message to the Value DeFi team asking them “do you really know flashloan?” The message came in reference to a tweet Value DeFi published claiming it had flash loan attack protection.
The team behind the project has now confirmed it encountered a “complex attack that resulted in a net loss of $6 million,” and added it is now working on a postmortem and exploring ways to mitigate the impact on users.
