DEUS Finance loses $6M following stablecoin hack

Decentralized Finance (DeFi) protocol DEUS has mislaid implicit $6 cardinal owed to a information breach connected its stablecoin DEI. The hacker exploited a vulnerability successful the BNB Smart Chain (BSC) connected May 5, according to blockchain information steadfast PeckShield. 

A bot initiated the hack connected the BSC, which led to a nonaccomplishment of much than $1.3 million. The attacker besides targeted the Arbitrum network, with ARB/ETH deployments losing implicit $5 million. Twitter users claimed the token declaration had a basal implementation mistake arsenic the basal cause.

— PeckShield Inc. (@peckshield) May 5, 2023

The protocol confirmed the attack, paused each contracts, and burned DEI tokens to forestall immoderate further damage. "We are presently successful the process of comprehending the existent backing of DEI tokens," said DEUS squad connected Twitter, adding that a "comprehensive betterment and redemption plan" volition beryllium created aft a afloat investigation of the balances and snapshots.

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DEI is utilized arsenic a collateral mechanics for third-party instruments built connected Fantom protocol. Its terms dropped 30% implicit the past 24 hours, information from CoinMarketCap shows. The stablecoin is trading astatine $0.20 astatine the clip of writing, losing its $0.30 peg. Last year, the stablecoin besides lost its $1 peg successful the aftermath of Terraform Labs collapse. 

It is not the archetypal clip that DEUS Finance has been hacked. The protocol was exploited successful March 2022 successful a flash-loan attack, resulting successful implicit $3 cardinal losses successful Dai (DAI) and Ether (ETH). At the time, Peckshield revealed the exploiters funneled the stolen funds utilizing the coin mixer instrumentality Tornado cash.

DEUS Finance is simply a decentralized marketplace that allows integer assets and non-digital assets, specified arsenic commodities, to beryllium traded connected the Ethereum blockchain.

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