Avalanche flash loan exploit sees $371,000 in USDC stolen | The Financial Express

Avalanche flash loan exploit sees $371,000 in USDC stolen

The incident resulted in the generation of NXUSD “bad debt” in the NXUSD protocol totaling $500,000.

Avalanche flash loan exploit sees $371,000 in USDC stolen
Nereus asserts that the possibility for the exploit was created by a "missed step" in the price computation.

Nereus Finance, an avalanche-based lending protocol, was the target of a cunning attack that saw a user profit $371,000 in USD Coin (USDC) through a smart contract exploit, as reported by Cointelegraph.

The assault affected liquidity pools on Nereus related to decentralised exchange Trader Joe and automated market maker Curve Finance, according to blockchain cybersecurity firm CertiK, one of the first to identify the issue on September 6.

According to Cointelegraph, CertiK also claimed that the underlying protocols had been affected, but on September 7, Curve Finance reacted by saying, “Perhaps you meant ‘assets impacted,’ not ‘protocols impacted. Apparently unaffected are only ‘nereusfinance’ and its assets.

The AVAX, USDC Trader Joe LP (JLP) pool price was intentionally manipulated for a single block by an “exploiter” using a $51 million flash loan from Aave, according to a thorough post-mortem of the incident published by Nereus Finance on Sept. 7.

As a result, the unidentified hacker was able to create NXUSD, the native token of Nereus, for 998,000 versus $508,000 in security. Once the flash loan was repaid, they were able to exchange this money into a variety of assets using a number of liquidity pools and walk away with a net profit of $371,406 in the process. Cointelegraph noted.

The incident resulted in the generation of NXUSD “bad debt” in the NXUSD protocol totaling $500,000.

As per Cointelegraph, the Nereus team claims that it acted swiftly to address the issue; following consultation with security professionals, creating a mitigation strategy, and the notification of law enforcement, they liquidated and suspended the abused JLP market.

Nereus asserts that the possibility for the exploit was created by a “missed step” in the price computation. NXUSD continues to be highly collateralised, and the “Lending and Borrowing protocol was not affected by this exploit,” it was emphasised that “no users funds are at risk,”

Despite the recent flash loan exploit and several other noteworthy occurrences this year, the August 2022 Monthly Skynet Alerts Report from CertiK, which was published on September 2, asserts that there has been a noticeable decline in these attacks.

August showed a 95% decrease in flash loan attacks compared to the previous month, with only a $745,244 total loss—the second-lowest loss this year. With under $200,000, February continued to record the lowest loss from fraudulent use of flash loans.

(With insights from Cointelegraph)

Also Read: NFTs to be used for philanthropy by the Argentine Masonic Grand Lodge

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NFTs to be used for philanthropy by the Argentine Masonic Grand Lodge

According to Cointelegraph, it is the reportedly the first NFT project to be backed by a local Grand Lodge, which refers to the governing entity of a given freemasons group with regard to a certain region

Written by FE Digital CurrencySeptember 7, 2022 1:02:08 pm

Reportedly, profits from sale proceeds of CryptoMason NFTs will be diverted towards a local orphanage, a youth development center and an immigration rights center in Argentina

The Argentine Grand Lodge of Free and Accepted Masons is aiming to explore the non-fungible tokens (NFTs) space but with the aim to conduct philanthropy through its usage. The secretive society will be releasing 77 digital art NFTs, titled CryptoMasons, for their profits to be sent back to local charities, as reported by Cointelegraph.

According to Cointelegraph, it is the reportedly the first NFT project to be backed by a local Grand Lodge, which refers to the governing entity of a given freemasons group with regard to a certain region. While this project is from Argentina, there are reportedly hundreds of these entities existant globally. 

On the basis of information by Cointelegraph, the collection has esoteric images of the Masonic history and lore such as black and white checkered floors and the square and compass emblem. It is believed that even the given number of 77 NFTs present correlates with a numeral in regard to occultist traditions and spirituality. The website for the collection has claimed that the organisation is making use of this collection to contribute towards philanthropy.  ALSO READBitcoin trading volumes was 95% less than what was reported: ReportBank of Russia agrees to legalise crypto for cross-border paymentsPro-blockchain narratives hinder Bitcoin adoption: StackinSat foundercoto launches ‘City Ambassador Program’

Moreover, Cointelegraph noted that this is another NFT collection using the combination of Web3.0 technology and utility for philanthropic purposes. Usage of digital assets have expanded from things such as raising funds for victims of the Ukraine conflict to micro-donations patronage for classical music. Profits from sale proceeds of CryptoMason NFTs will be diverted towards a local orphanage, a youth development center and an immigration rights center in Argentina. With regard to the country’s cryptocurrency adoption, Argentina’s Mendoza province have started to accept cryptocurrency for taxes and administrative fees, while Binance and Mastercard has unveiled prepaid cryptocurrency cards in Argentina. As per insights from Triple-A, close to 5.18% of Argentina’s population own a kind of cryptocurrency, which is over 2.4 million people.

(With insights from Cointelegraph)

Also Read: US patent awarded to PraSaga for creation of blockchain-based operating system

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