DEUS Finance suffers a $6M loss as a result of stablecoin attack

Over $6 million was lost via the Decentralised Finance (DeFi) protocol DEUS as a result of a security flaw in its stablecoin DEI. On May 5, the hacker took advantage of a flaw in the BNB Smart Chain (BSC), according to blockchain security company PeckShield. 

DEUS Finance loses $6M following stablecoin hack

Due to a security hole in its stablecoin DEI, the Decentralised Finance (DeFi) system DEUS saw a loss of almost $6 million. The hacker exploited a weakness in the BNB Smart Chain (BSC) on May 5, according to blockchain security firm PeckShield.

A bot started the BSC hack, which cost the company more than $1.3 million. The attacker also attacked the Arbitrum network, causing over $5 million in losses for ARB/ETH deployments. Twitter users asserted that the token contract's fundamental implementation flaw was its primary reason.

In order to stop additional harm, the system acknowledged the assault, halted all contracts, and burnt DEI coins. The DEUS team posted on Twitter, "We are currently in the process of comprehending the actual backing of DEI tokens," and added that following a thorough study of the balances and snapshots, a "comprehensive recovery and redemption plan" will be developed.

DEI is a collateral mechanism for third-party Fantom protocol-based instruments. According to statistics from CoinMarketCap, its price fell 30% during the last day. At the time of writing, the stablecoin is down from its $0.30 peg and is trading at $0.20. Following the failure of Terraform Labs, the stablecoin also lost its $1 peg the previous year. 

DEUS Finance has experienced hacking attacks before. In a flash-loan attack in March 2022, the protocol was attacked, resulting in losses of more than $3 million in Dai and Ether. Peckshield disclosed at the time that the exploiters used the Tornado cash currency mixer program to route the stolen money.

DEUS Finance is a decentralized exchange that enables the trading of both digital and non-digital assets on the Ethereum blockchain, including commodities.