Platypus, a protocol for decentralized financing (DeFi), has lost over $2 million in assets due to a recent flash loan exploit on its platform, this marks its third exploits in 2023.
According to the blockchain security platform CertiK, the DeFi platform was subject to three intrusions, with $2.23 million stolen. On October 12, the first assault occurred, stealing $1,200,000 from the platform. In response to the assault, the protocol deactivated all of its pools.
A second assault occurred hours later, resulting in the theft of assets worth $575,000. A minute later, the third attack occurred, resulting in the loss of $450,000 in assets.
Platypus is an automated market maker (AMM) protocol that enables the trading of digital assets autonomously through liquidity pools as opposed to more traditional markets with buyers and sellers. In 2021, Three Arrows Capital led a funding round in which the platform raised $3.3 million.
Due to a flash loan exploit, the DeFi platform experienced losses. In this attack, traders would exploit a vulnerability, allowing them to instantly borrow cryptocurrency without supplying the required collateral.
CertiK observed that the recent flash loan attack represents the third assault on Platypus in 2023. On February 16, the protocol lost $8.5 million due to a similar exploit, which also resulted in the de-peg of the Platypus USD stablecoin, causing its price to drop from $1 to $0.48. According to CertiK, the protocol lost approximately $157,000 in July due to a flash loan exploit.
In March, the DeFi protocol established a compensation portal for assault victims who had lost assets in February. The portal was utilized so that users could determine how much compensation they were eligible to receive from the platform and voice any concerns prior to the distribution of funds.
