Warp Finance lost almost $8 million in a DeFi attack

Defi-lending lending protocol Warp Finance lost $7.7 million worth of stablenecoins as a result of the attack.

„The protocol was attacked using a sophisticated flash loan scheme that allowed a user to borrow an amount that exceeded the collateral, resulting in the loss of lenders‘ funds. The team is considering recovering the roughly $5.5 million that is still in the collateral vault. After a successful recovery, the funds will be distributed to users who suffered losses,“ the project’s developers said on Twitter.

Before that, the Warp team of Bitcoin Supreme Review advised users not to deposit stabelcoins into the protocol. The Warp project was announced in late October and officially launched just eight days ago, on December 9.

According to expert Emiliano Bonassi, the attack also included several „flash swaps“ in three liquidity pools on the Uniswap decentralized exchange – Wrapped BTC, USDC and USDT – as well as two term loans on the dYdX trading platform using ether and DAI stablockoin.

Earlier term credit attacks resulted in $89 million in losses at Compound Protocol and $34 million at Harvest Finance.

The Warp team promised to publish a detailed report on the incident in the coming days.