DeFi Despite positive technological developments, the decentralized finance (DeFi) space is still rife with hacks and exploits. This much was made clear just recently, when $7 million was siphoned out of a cryptocurrency vault based on Ethereum. While many users have been adversely affected by this exploit, the unknown attack did make a move to return some of the funds.
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The Hack of Protocol Value DeFi
On Saturday morning, Ethereum and DeFi analysts noticed that an extremely unusual transaction had taken place.
A user had withdrawn 80,000 ETH worth of flash loans from Aave, along with $116 million in flash loans from Uniswap, according to analysts. The user subsequently used that capital to manipulate the price of stablecoins on Curve to withdraw around $7 million from Value DeFi, a yield aggregator protocol.
In total $7.5 million was stolen, though $2 million of that sum was returned to the deployer address for the Value DeFi protocol. It has become common practice for DeFi attackers to return some funds to the deployer address of the protocols they hack, seemingly as a sign of pity for users affected by the exploit.
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Many users were affected by this attack. Many users lost a large amount of capital in the attack as the attacker