9621 Agnes Crossing, Lake Suzanneview, New Mexico Island 84604-9295.
Avalanche-backed DeFi platform Nereus Finance has been fortified with a $51 million flash loan. According to CertiK, the hacker’s loot was approximately 370,000 USDC. #CertiKSkynetWarning🚨 CertiK Skynet submitted
Avalanche-backed DeFi platform Nereus Finance has been fortified with a $51 million flash loan. According to CertiK, the hacker’s loot was approximately 370,000 USDC.
CertiK Skynet submitted a report #flash credit attack #AVAX contract 0xe767c… and it affects some LPs. The attacker made ~370,000 USDC profit.
Possible affected protocols include:@nereusfinance @traderjoe_xyz @CurveFinance
Contact us for analysis.Stay frosty!☃️ pic.twitter.com/bZvtgVPpl4
— CertiKAlert (@CertiKAlert) 7 September 2022
The attacker manipulated the prices of AVAX tokens on Nereus using borrowed funds. After the arbitrage process was completed and the loan was repaid, approximately 370,000 USDC remained at the address.
The attacker then transferred funds from the Avalanche blockchain to Ethereum. It held 194 ETH (~$310,000) and 15,850 DAI at a matching address in the network of the second largest cryptocurrency by capitalization.
The hacker sent most of the ether to addresses of the FixedFloat platform for digital asset exchange in four transactions of 45 ETH. At the time of writing, all 12.7 ETH and 15,850 DAI are left in the Ethereum wallet.
The Nereus Finance team confirmed the attack:
“This event impacted a market and the NXUSD protocol as a whole remains over-collateralised. We are in the process of recovery and will publish the results of the investigation shortly.”
We are aware of a flash credit exploit in the AVAX/USDC Joe LP NXUSD market. This event is isolated to a single collateral market and the NXUSD protocol as a whole is heavily collateralised. We are running a recovery process and will publish an autopsy shortly.
— Nereus Finance🔺 (@nereusfinance) 7 September 2022
NXUSD is an algorithmic stablecoin pegged to the US dollar by Nereus Finance. In the background of the event, asset prices dropped to about $0.89. At the time of writing, the token has not regained parity with the underlying asset and is trading at around $0.96 (CoinGecko).
Recall that the US Federal Bureau of Investigation named instant credit initiation as one of the three most popular attack vectors for DeFi projects.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
