Akropolis DeFi Platform Admits To Being Hacked For $2 Million

The Akropolis DeFi platform just admitted to being hacked for $2 million in the latest flash loan attack on the ETH-based DeFi protocol for yield farming so let’s find out more in today’s crypto news.

The Akropolis Defi platform runs a protocol for generating interest on pooled ETH-based assets which was the latest DeFi project to be hacked via a flash loan. Several of the pools within the project’s Delphi Savings pool for yield farming were drained out of 2 million DAI worth about $2 million. The project reported in a statement:

 “At ~14:36 GMT we noticed a discrepancy in the APYs of our stablecoin pools and identified that ~2.0mn DAI had been drained out of the yCurve and sUSD pools.”

We recently identified a hack executed across a body of smart contracts in the "savings pools" that have been audited twice. We are working with security specialists and on-chain analytics providers and aim to make a more detailed statement shortly. Thank you for your patience.

— Akropolis (@akropolisio) November 12, 2020

Curve is a protocol for trading stablecoins and earning interest so according to Akropolis, other Curve pools like BUSD and sBTC as well as Aave and Compound pools were not affected. The attacks came as a surprise for Akropolis which said that the pools underwent two independent audits:

 “However, the attack vectors used in the exploit were not identified in either audit. The essence of the exploit in question is a combination of a re-entrancy attack with dYdX flash loan origination.”

The hacker didn’t keep the stolen funds for so long and immediately transferred the winnings to another wallet. Akropolis committed to reviewing the code and to explore ways to reimburse the users for the loss in a way that is sustainable for the project. While doing so, it’s paused all stablecoin pools and says that it has informed exchanges of the hack. Late last month, Harvest Finance lost about $34 million in USDC and USDT stablecoin reserves due to a flash loan attack. Last year, bZx’s margin trading platform was the target of the $350,000 exploit.

Speaking of hacks, According to the latest reports, it seems that EOS suffered the most crypto hacks and not Ethereum dapps as many believed. Malicious actors targeted crypto protocols and exchanges since Bitcoin started to gain in value and popularity. However, the analysis shows that these attacks dropped this year but they remain the leading cause of concern for crypto projects. Contrary to popular belief, Ethereum-based applications and tokens were not the most attacked since EOS suffered the most, according to a recent study.