Hundred Finance, a multichain lending protocol, has faced a security hack through Ethereum layer-2 blockchain Optimism. It’s believed that the protocol sustained $7.4 million worth of losses, as stated by Cointelegraph.
According to Cointelegraph, on April 15, 2023, Hundred Finance informed about the exploit. Reportedly, the protocol approached the hacker and coordinated with different security incidents regarding the matter.
Based on information by Cointelegraph, flash loan hacks concern a hacker receiving funds through an uncollateralised loan from a lending protocol. Sources suggest that the hacker utilises these to tamper with an asset’s price on a decentralised finance (DeFi) platform. “The exchange rate formula was manipulated through Cash value. Cash is the amount of WBTC that the hBTC contract has. The attacker manipulated it by donating large amounts of WBTC to the hToken contract so that the exchange rate goes up,” Certik, a blockchain security firm, said.
Moreover, Cointelegraph noted that the attack happened a year post Hundred sustaining another attack on the Gnosis Chain. During that time, the hacker took control over six million dollars. Reportedly, the hacker also hijacked funds from the Agave protocol.
(With insights from Cointelegraph)