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Defi Protocol – Inverse Finance exploited more than 15 million USD

Last night on April 2, Inverse Finance encountered an error related to the INV price index, allowing hackers to take advantage of and take away assets on this platform.

Inverse Finance, a stablecoin protocol focused on generating an efficient return on capital, was drained in a mining run early Saturday. PeckShield, one of the crypto industry’s leading security analysis firms, alerted the Inverse team to the hack on Twitter minutes after the exploit occurred.

Inverse’s latest announcement line says:

“Today, the Inverse Finance market Anchor was manipulated because of the INV/ETH pool price index on SushiSwap. This caused the INV price to skyrocket and allowed the hacker to borrow another 15.6 million USD in the form of DOLA, ETH, WBTC and YFI.”

The project also said that this incident is not related to flash loans, as well as bugs in smart contracts and front end. Inverse also said it is suspending lending activities on Anchor.

Further analyzing the vulnerability related to oracle, account Igor Igamberdiev said:

“The Oracle contract that Inverse Finance uses is that of the Keeper Network, which is sourced from the SushiSwap pool average price index, which in turn returns the price for the INV token too high. The attacker mortgaged INV and took advantage of the overvalued property to borrow up to $15.6 million.”