Another decentralized platform bEarn has fallen victim to a flash loan exploit and lost nearly $10.8 million worth of stablecoins on Sunday. The auto yield platform based on the Binance Smart Chain stated that the cyber attack resulted in the loss of the BUSD Alpaca strategy.
Apart from providing the yield generation on bDollar – a stablecoin – it bridges the gaming aggregation Binance Smart Chain and Ethereum system. Interestingly, the decentralized protocol announced that it would be rolling out its plan to compensate the victims as well as vowed to look into the bug that led to the cyber attack.
As per the initial report, the hack was prompted by the wrong implementation of the withdrawal function. The bug enabled the user to withdraw more BUSD than needed. Reportedly, the hacker used Cream Finance to get the loan and used that to withdraw more than thirty times from the bVault.
After that, he withdrew $8.9 million worth of BUSD and used it to repay the flash loan. In response, the DeFi platform contacted Binance to track the attackers’ address and block it from transferring the amount.
Meanwhile, following the hack, stablecoin plunged ten percent. Besides that, bEarn revealed that the victims would immediately get almost eight-seven percent, while the additional seven percent in the bDollar.
On the other hand, amidst the growing cyber-attacks on decentralized protocols, compensation plans have become quite important. Given the situation, it looks like other protocols will also have to allocate some of their token supply for such purposes.