Cream Iron Bank Flash Loan Attack: Markets Re-Enabled While Asset Borrow Is Paused

Cream Iron Bank $36M Flash Loan Attack: Markets Re-Enabled While Asset Borrow Is Paused

Following the Cream Iron Bank flash mortgage assault, preliminary findings of a probe have proven that contracts and markets nonetheless operate usually. As a outcome, markets have now been re-enabled whereas the asset borrowing operate has been paused. The Cream staff additionally reveals that investigations are persevering with.

The Exploit

After the exploit, the worth of the Cream protocol token plummeted from simply over $280 on February 12 to $186.48 24 hours later. At the time of writing, Messari knowledge reveals that the token had recovered though it has remained principally underneath $230.

Cream Iron Bank $36M Flash Loan Attack: Markets Re-Enabled While Asset Borrow Is Paused

Meanwhile, in his evaluation of the exploit, researcher Igor Igamberdiev reveals that the attacker(s) had “used Alpha Homora for borrowing Synthetix stablecoin from Ironbank.” He provides that “every time they (would) borrow twice as a lot as within the earlier one.” The attacker(s), did this by means of two transactions and every time they lend the funds again into Ironbank they might obtain Yearn Synthetix stablecoin.

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According to Igamberdiev, the attacker(s) had sooner or later secured a 1.eight million USDC flash mortgage from Aave v2. This flash mortgage was then swapped with Synthetix stablecoin for onward lending to Ironbank.

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Millions Siphoned

Using related techniques, the attacker(s) would take out an excellent larger mortgage. In his Twitter thread, Igamberdiev explains:

Also, a $10 million flash mortgage is taken, which can also be used to extend the variety of Yearn Synthetix stablecoin. In the top, the variety of their Yearn Synthetix stablecoin reaches an unbelievable quantity, which permits them to borrow something from Iron financial institution.

Consequently, the attackers went on to borrow stablecoins valued at $13.four million in addition to wrapped ETH valued at over $23 million.

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At the time of writing, it had been revealed that the debt ensuing from the assault “won’t be between customers and Alpha Homora.” Instead, will probably be Alpha Homora and Iron Bank that should “discover a resolution that resolves the debt between the 2 protocols.”

What do you suppose must be achieved to stop future flash mortgage assaults? You can inform us what you suppose within the feedback part beneath.


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