{"id":4354,"date":"2021-06-22T23:49:25","date_gmt":"2021-06-22T22:49:25","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=4354"},"modified":"2021-06-23T00:01:04","modified_gmt":"2021-06-22T23:01:04","slug":"impossible-finance-lost-500k-due-to-defi-hacks-on-binance-smart-chain","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/impossible-finance-lost-500k-due-to-defi-hacks-on-binance-smart-chain\/","title":{"rendered":"Impossible Finance loses $500k due to DeFi hacks on Binance Smart Chain"},"content":{"rendered":"\n
The newest DeFi<\/a> exploit cost Impossible Finance $500,000 in losses.<\/h5>\n\n\n\n
\"Introduction<\/figure><\/div>\n\n\n\n

In a flash loan attack, Impossible Finance, a decentralized finance (DeFi) system on the Binance Smart Chain, was attacked for $500,000.<\/p>\n\n\n\n

A flash loan attack is a form of DeFi exploit in which hackers take an uncollateralized loan from a lending protocol and manipulate the market in their favor through a series of technological tactics.<\/p>\n\n\n\n

On June 21, an attack on the Impossible Finance\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> liquidity pool resulted in the loss of 229.84 Ethereum (ETH), which was worth $500.000 at the time of the exploit.<\/p>\n\n\n\n

Hackers used a counterfeit token to initiate a flash loan attack in order to deplete the protocol's liquidity pool.<\/p>\n\n\n\n

Service of auditing The attack, according to WatchPug, involves a series of swaps at almost the same price, depleting the liquidity pool, which is “normally impossible.”<\/p>\n\n\n\n

At 4 AM UTC, Jun 21, $0.5M was stolen from Impossible Finance.<\/p>

The hacker made multiple swaps in a row at about the same price and drained the LP, which is usually impossible.<\/p>

How does Impossible Finance make the impossible possible?<\/p>

Read our analysis:https:\/\/t.co\/3r0p1dOFWz<\/p>

\u2014 WatchPug (@WatchPug_) June 21, 2021<\/p><\/blockquote>\n\n\n\n

Multiple swaps of the protocol's native Impossible Finance token (IF) to Binance USD stablecoin (BUSD) and then to Binance Coin, the protocol's native coin, were possible thanks to a bug in the pool's smart contract (BNB).<\/p>\n\n\n\n

According to Mudit Gupta, a core developer of SushiSwap, the breach was not very inventive, and it exploited a vulnerability similar to the recent attack on the BurgerSwap protocol<\/a>, which was also built on the Binance Smart Chain and in which $7.2 million was taken.<\/p>\n\n\n\n

Impossible finance got exploited today for $500k.https:\/\/t.co\/mzCPRluOjn<\/p>

Same exploit as the burger swap one:https:\/\/t.co\/3PkVtn7Hi7<\/p>

If the original project gets hacked, why don't the forks react?<\/p>

\u2014 Mudit Gupta (@Mudit__Gupta) June 21, 2021<\/p><\/blockquote>\n\n\n\n

Impossible Finance issued a statement about the occurrence through the official announcement<\/a> channel, claiming to have set up an insurance fund.<\/p>\n\n\n\n

All user funds entered into liquidity pools previous to the attack will be fully reimbursed; however, all liquidity pool incentives have been halted, and users are advised not to add or withdraw funds for the IF\/BUSD and IF\/BNB pairs.<\/p>\n\n\n\n

After the network issued a public “request for action” to developers, Impossible Finance joined other flash loan exploits on the Binance Smart Chain, such as Pancake Bunny and Belt Finance.<\/p>\n\n\n\n

Copycat? Serial? All of the DeFi predators have yet to be profiled in the space.<\/p>\n","protected":false},"excerpt":{"rendered":"

The newest DeFi exploit cost Impossible Finance $500,000 in losses. In a flash loan attack, Impossible Finance, a decentralized finance (DeFi) system on the Binance Smart Chain, was attacked for $500,000. A flash loan attack is a form of DeFi exploit in which hackers take an uncollateralized loan from a lending protocol and manipulate the market in their favor through a series of technological […]<\/p>\n","protected":false},"author":12,"featured_media":4355,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[73,21],"tags":[653,197,736],"class_list":["post-4354","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-defi-news","category-news","tag-binance-smart-chain","tag-defi","tag-impossible-finance"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2021\/06\/Impossible-Finance-lost-500k-due-to-DeFi-hacks-on-Binance-Smart-Chain.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/4354","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=4354"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/4354\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/4355"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=4354"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=4354"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=4354"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}