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Arbitrum-based lending platform Lodestar Finance was exploited on December 10, 2022, according to a tweet from the project’s Twitter account on Saturday. Community reports show that Lodestar lost approximately $6.9 million from the vulnerability.
Another decentralized finance (defi) platform, Lodestar Finance was hacked for $6.9 million in an exploit, a series reports detail. “[The] the protocol was exploited and instances have been drained,” said Lodestar’s official Twitter account. “We have set all interest rates to 0 so that the offer and loan balances do not move while we weigh recovery options.”
Lodestar says the hacker “manipulated the exchange rate of the plvGLP contract” and then “delivered plvGLP collateral to Lodestar and borrowed all available liquidity.” This allowed the exploiter to extract “what they could.” However, a “safeguard mechanism prevented them from fully withdrawing plvGLP,” the team noted on Saturday.
Via the team’s Discord channel, Lodestar team members explained that they had paused lending and liquidation activity. Data from defillama.com indicates that the Total Value Locked (TVL) in Lodestar was drained from close to $7 million down to just $11.06. The project’s native cryptocurrency lodestar (LODE) has fallen 53% in value against the US dollar in the last 24 hours.
LODE recently hit a record high of $0.718 per unit, 18 days ago on November 23, 2022. LODE’s value is now down 76.1% from this value and has seen a 24-hour price range of around $0.13 to $0.369 per unit. At press time, LODE is changing hands for $0.173 per coin.
What do you think of the Lodestar Finance hack on Saturday? Let us know what you think about this topic in the comments section below.
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