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News

Lodestar Finance Was Exploited For About $6.5 Million

December 11, 2022 - Around 2 mins mins to read
Lodestar Finance, an Ethereum lending platform, was attacked and exploited. The attacker burned roughly 3 million GLP, resulting in a profit of about $6.5M. However, the harmed firm announced that they may be able to recover 2.8M GLP of the stolen funds.
Lodestar Finance Was Exploited For About $6.5 Million

The exploiter was successful in manipulating the plvGLP token exchange rate to 1.83 GLP per plvGLP, making it 83% more valuable than it should have been. Using the inflated tokens as collateral, the exploiter then used bad debt to withdraw all available liquidity on Lodestar Finance.

The exploiter took out 8 Flashloans ($70.5 million dollars), then deposited all the loaned ETH (14,960) to GMX to start the ultimate exploit process. Subsequently, the exploiter pooled the WETH (14,960) together and withdrew and deposited to GMX, in which he swapped 14,960 WETH for 19,001,512 USDC and deposited roughly $70 million onto the platform.

The exploiter then borrowed PlsGLP and lends the PlsGLP to receive IplsGLP, which potentially supports him to take control of the entire supply. Since the supply of sGLP increased by almost 1.68x, he borrowed the rest of the assets leaving the protocol with bad debt, after which he repaid All flashloans with interest and redeemed the underlying assets for 4527 ETH (5,800,000 USD).

Other plvGLP holders were able to profit from the exploiter’s actions by cashing out 1.83 GLP per plvGLP, according to Lodestar Finance.

Lodestar Finance claims that 2.8 million GLP, worth $2.4 million at the time, can be recovered. It is also working to reach an agreement with the exploiter.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Thana

I am a news editor at Coincu, where I produce daily editorial packages and manage the knowledge and review article sections. Before journalism, I earned a Bachelor's degree in Global Logistics and Supply Chain Management from Northampton University and studied news journalism at Press Association Training.