Linear Finance reported an attack that resulted in the draining of all ℓUSD liquidity on two key DEXs, PancakeSwap and Ascendex. As a result, the attack caused the price of ℓUSD to drop to zero, as reported by Linear.
The exploited exchange is a cross-chain compatible and delta-one asset protocol. Linear Finance offers trading of liquid assets, swaps, and staking for LUSD alongside LINA and other major tokens.
The attacker minted an unlimited supply of ℓAAVE, then traded this asset for ℓUSD on Linear and subsequently sold the assets on PancakeSwap and Ascendex.
Upon detecting the exploit, Linear Finance took immediate action to protect the protocol, other assets, and users. The exchange halted all contracts that allow minting, burning, or exchanging, disabled the Linear bridge for ℓUSD, and reached out to a team to track the attacker(s). The Linear Finance team also shared the wallet addresses known to have taken part in the exploit with major exchanges and authorities.
Furthermore, Linear Finance assured users of working to restore the protocol and propose a remedy to the damage. The team advised users to temporarily refrain from buying or trading ℓUSD.
ℓUSD is the stablecoin of Linear Finance, with a market cap of $18,833,197,370 and a current trading price of $0.9891, as reported by Coinmarketcap.
What do you think of this article? Share comments below.