{"id":193399,"date":"2021-06-22T23:00:42","date_gmt":"2021-06-22T22:00:42","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=193399"},"modified":"2021-06-24T02:07:48","modified_gmt":"2021-06-24T01:07:48","slug":"defi-hacks-on-binance-smart-chain-continue-as-impossible-finance-drained-for-500k","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/defi-hacks-on-binance-smart-chain-continue-as-impossible-finance-drained-for-500k\/","title":{"rendered":"DeFi hacks on Binance Smart Chain continue as ‘Impossible Finance’ drained for $500k"},"content":{"rendered":"

Impossible Finance, a decentralized finance (<\/span>DeFi<\/span><\/a>) protocol on the <\/span>Binance Smart Chain<\/span><\/a> has been exploited for $500,000 in a flash loan attack.<\/span><\/p>\n

A flash loan attack is a common type of DeFi exploits in which hackers take an uncollateralized loan from a lending protocol and through a series of technical maneuvers manipulate the market in their favor.<\/span><\/p>\n

Vulnerability\u00a0<\/strong><\/h2>\n

The attack on the Impossible Finance liquidity pool happened on June 21 and resulted in a loss of 229.84 Ethereum (<\/span>ETH<\/span><\/a>), valued $500.000 at the time of the exploit.\u00a0<\/span><\/p>\n

By using a fake token, hackers launched a flash loan attack to exhaust the protocol\u2019s liquidity pool.<\/span><\/p>\n

Auditing service WatchPug explained that the attack involved consecutive swaps at about the same price, draining the liquidity pool, \u201cwhich is usually impossible.\u201d\u00a0<\/span><\/p>\n

\n

At 4 AM UTC, Jun 21, $0.5M was stolen from Impossible Finance.<\/p>\n

The hacker made multiple swaps in a row at about the same price and drained the LP, which is usually impossible.<\/p>\n

How does Impossible Finance make the impossible possible?<\/p>\n

Read our analysis:https:\/\/t.co\/3r0p1dOFWz<\/a><\/p>\n

— WatchPug (@WatchPug_) June 21, 2021<\/a><\/p><\/blockquote>\n