Opyn Removes Liquidity From Uniswap After $370K Stolen in DeFi Exploit

CoinTelegraph

Attackers have exploited a vulnerability in the Opyn ETH Put contract to walk away with more than $370,000.

One of the first members of Crypto Twitter to report on the theft, DegenSpartan, stated on Aug. 4 that the traders used flash loans to buy Ethereum Put oTokens (oETH) from Uniswap. They then reportedly chose an ERC20 token — in this case, USD Coin (USDC) — as collateral and exercised the trading option. 

The result was reportedly a double transfer which effectively “stole” the collateral. According to blockchain records, the attackers received both their original Ethereum (ETH) deposits and USDC options.

How To Get Free Crypto  

In a Aug. 4 blog from Opyn, the platform estimates losses from the exploit at 371,260 USDC but said this amount may change.

“This exploit allowed an attacker to ‘double exercise’ oTokens and steal the collateral posted by certain sellers of these puts.” 

Pulling liquidity quickly

Opyn realized something was happening within the day and issued a statement on Twitter, saying it had removed liquidity from Uniswap during its investigation.

Attempting to prevent further abuse of this loophole, Opyn recovered 439,170 USDC of collateral from outstanding vaults using a white hat hack, effectively returning it to Put sellers. However, some users were still understandably upset at the loss and delayed response:

Screenshots from Opyn Discord chat

According to Opyn co-founder Alexis Gauba in a Discord chat session, the platform has offered to buy any ETH Put oTokens “at above market prices,” which she said were 20% above the best ask price at Deribit. 

Coinbase Banner  

“This only applies to oTokens that were bought before today,” Gauba said. The last update she posted stated Opyn was working on a plan “to mitigate impact for ETH put sellers.”

Go to Source
Author: Turner Wright


Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.