Platypus, the Avalanche-native StableSwap protocol, suspended all of its mining pools on Thursday after discovering a flash loan exploit on the DeFi platform.
PeckShield, which was the first company to report the platform attack, announced Thursday that the exploit resulted in losses of over $2 million.
Blockchain security firm CertiK laid out the results of its own investigation, saying that two attackers stole about $1.3 million worth of wrapped AVAX (WAVAX) and about $913,000 worth of liquid staked AVAX (sAVAX). would have.
Playtypus is currently investigating what happened.
“The entire team is working and communicating with various parties to attempt to recover the funds from the contracts, determine the root cause of this exploit and track down the identity of the hacker(s) at this time. We will share the updates with the community soon,” a moderator wrote on the Protocol’s Discord channel on Thursday.
Platypus is an automated market maker protocol (AMM) within the Avalanche blockchain, designed with the primary goal of exchanging stablecoins.
The protocol raised $3.3 million in December 2021 in a funding round led by now-defunct crypto hedge fund Three Arrows Capital (3AC) and Defiance Capital.
The protocol suffered a separate exploit in February that resulted in a loss of more than $8.5 million.
This incident was also a flash loan attack, where traders can instantly borrow cryptocurrencies and return them in the same transaction without providing any collateral.
In this particular attack, the perpetrators exploited a vulnerability in the USP solvency checking mechanism of Platypus' native stable token and tricked its smart contracts into believing that USP was fully secured.
As of September, the Platypus team was able to recoup approximately 61.7% of the initial losses incurred by its liquidity pools during the USP exploit.
They had drawn on a reserved fund to initiate a second phase of compensation on September 26, the team said on X.
Platypus said it will release further updates on the latest exploit in a timely manner.
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