Platypus DeFi suffers $2.2M loss in flash loan exploit

Decentralized finance (DeFi) protocol Platypus suffers another flash loan exploit, resulting in a loss of over $2 million in assets on its platform. This is the third time Platypus has been exploited in 2023, with previous incidents In February and July, resulting in a combined loss of over $8.5 million and $157,000. The platform has suspended all of its pools following the attack.

According to CertiK, a blockchain security platform, Platypus was attacked three times, resulting in a total loss of $2.23 million. The first attack occurred on October 12, with subsequent attacks occurring within hours of each other. The total amount lost was $1.2 million, $575,000, and $450,000, respectively.

https://twitter.com/Platypusdefi/status/1712365385100689584?t=HwwPhhRcoHnYAlKKc4pwhQ&s=19

Platypus is an automated market maker (AMM) protocol that uses liquidity pools to facilitate digital asset trading, rather than traditional buyers and sellers. In 2021, the platform raised $3.3 million in a funding round led by Three Arrows Capital, which has since filed for bankruptcy.

In a flash loan exploit, traders exploit the market by borrowing crypto without providing collateral, leading to significant financial losses for the affected platform.

CertiK emphasized that this recent flash loan attack marks the third incident targeting Platypus in 2023. The series of attacks began on Feb. 16, when the protocol lost $8.5 million, resulting in a $8.5 million loss. This incident also caused the depegging of the Platypus USD (USP) stablecoin, plummeting its price from $1 to $0.48. CertiK also noted that the protocol lost around $157,000 in a flash loan exploit in July.

In March, Platypus created a compensation portal for victims of the February attack, which allowed them to verify their losses and raise any concerns before the compensation was distributed.

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