Deus Finance’s DeFi Protocol Was Hacked, Losses Exceeded IDR 88 Billion

Liputan6.com, Jakarta Decentralized finance (DeFi) protocol Deus Finance lost more than USD 6 million or the equivalent of IDR 88 billion (assuming an exchange rate of IDR 14,675 per US dollar) due to a hack on the DEI stablecoin (DEI).

Hackers exploited a vulnerability in the BNB Smart Chain (BSC) blockchain on May 5, according to blockchain security firm PeckShield.

A bot initiated a hack on BSC, which led to a loss of over USD 1.3 million or equivalent to IDR 19 billion. Attackers also targeted the Arbitrum network, with the ARB/ETH deployment losing over USD 5 million or equivalent to IDR 73.3 billion.

Twitter users claim the token contract has a basic implementation error as the root cause. The protocol confirms the attack, terminates all contracts and burns DEI tokens to prevent further damage.

“We are currently in the process of understanding the actual support of the DEI token,” said the Deus team on Twitter, quoted from Cointelegraph, Monday (8/5/2023).

The Deus Finance team adds a “comprehensive recovery and redemption plan” will be created after a full analysis of balances and snapshots.

The DEI token is used as a guarantee mechanism for third party instruments built on top of the Fantom protocol. The price is down 30 percent over the last 24 hours, according to data from CoinMarketCap.

Not First Time Experiencing Hacking

This is not the first time Deus Finance has been hacked. The protocol was exploited in March 2022 in a flash-loan attack, which resulted in losses of over USD 3 million or the equivalent of IDR 44 billion in crypto Dai and Ether.

At the time, PeckShield revealed the exploiters were channeling the stolen funds using the Tornado Cash crypto mixer.

Deus Finance is a decentralized marketplace that allows digital assets and non-digital assets, such as commodities, to be traded on the Ethereum blockchain.

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