ApeRocket, a decentralized finance (DeFi) yield farming aggregator, fell victim to two flash loan attacks that cost users $1.26 million.
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According to a blog announcement, Wednesday's attacks on ApeRocket's Binance Smart Chain and its Polygon fork occurred within a few hours.
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The two hacks were carried out on Aave and PancakeSwap and together amounted to $1.26 million.
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In both cases, significant funds were borrowed into AAVE and CAKE, meaning the hacker held over 99% of the funds in the vaults of the two protocols. Large amounts of money were then sent to the vault contract, resulting in the minting of a large number of tokens, which the hacker then discarded.
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As a result, the price of ApeRocket's SPACE token crashed by around 63%. In the meantime, no further SPACE tokens will be minted while ApeRocket works to compensate investors for the incident.
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Yield farming refers to a process through which individuals can earn interest or rewards on crypto deposits they make with lenders. DeFi apps allow users to conduct financial transactions without having to use a traditional intermediary such as a bank.
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