Belt Finance Got Exploited For $6.2 Million As Flash Loans Continue

Belt Finance got exploited out of $6.2 million as a hacker used flash loans to exploit the vulnerability in the 4Belt pool as we can see more in our latest crypto news today.

The hacker managed to steal $6.2 million worth of BUSD which is the Binance native USD-pegged stablecoin converted to ETH through 1inch DEX and withdrawn from the Binance Smart Chain onto Ethereum. The hack was benign apparently as only $6.2 million was stolen from Belt Finance’s TVL worth $2.6 billion. The BeltBUSD vault uses four strategies and a bug in the Elipsis strategy was used to drain the funds via the Venus strategy.

The vault sends new deposits to the undersubscribed strategy and payout the withdrawals from the oversubscribed strategy to create a balance between the four of them. The Elipsis strategy bug creates a value miscalculation if the 3EPS pool gets unbalanced. Using flash loans, the hacker swapped more than $200 million from BUSD to USDT and unbalanced the 3EPS pool so it activated the Elipsis strategy bug and the 4belt pool would have overvalued the hacker’s shares and pay out the additional 0.5% profit after the conclusion of the flash loan. This resulted in a $1 million profit from the $200 million flash loan transaction.

The hacker repeated the transaction a few times and netted $6.2 million in profit which caused $13 million in total losses as $6 million in fees were used to pay the 3EPS pool. Along with the recent hacking incidents on the Binance Smart Chain, the hack led to a condemnation of the fork culture where codebases are replicated without going through audits which led to a few flash loan attacks over the past few weeks.

As reported recently, Like most things in crypto, PancakeBunny has a governance token $BUNNY which was trading at $145 a day ago before the DeFi Exploit drains the funds. Since the DeFi protocols like PancakeBunny don’t deal with banks, they incentivize the liquidity with the dedicated LP Tokens and anyone can pour money into the DEfi service and will become a liquidity provider with the more money being put in, the more LP Tokens you will get. These are valuable in and of themselves but they can be used to claim rewards.

Source: https://www.dcforecasts.com/altcoin-news/belt-finance-got-exploited-for-6-2-million-as-flash-loans-continue/