ArbitragePlatform for -based lending Lodestar Finance went live on December 10, 2022. According to a tweet from the project’s administrator, a security vulnerability was exploited and around $6.9million was lost.
Lodestar Finance Loses $6.9M; Exploit Drains TVL, LODE Drops 53%
Another decentralized finance platform (defi) has suffered a major setback. On Saturday, Lodestar Finance was hacked for $6.9 million, according to a series of reports. “[The] protocol was exploited and the deposits were drained,” reported the official Lodestar Twitter account. “We have set all interest rates at 0 so that the offer and loan balances do not move while we weigh recovery options.”
The hacker reportedly “manipulated the exchange rate of the plvGLP contract” and then “provided plvGLP collateral to Lodestar and borrowed all available liquidity.” This allowed the exploiter to collect “what he could.” However, the “guarantee rate mechanism prevented them from fully charging the plvLPG,” the team explained on Saturday.
Via the team’s Discord Channel, members of the team explained that they had suspended liquidation and lending activities. According to defillama.com, the total value locked (TVL) in Lodestar dropped from nearly $7 million to just $11.06. The native cryptocurrency lodestar (LODE) has seen a 53% drop in value against US dollars in the past 24 hours.
LODE recently hit an all-time high at $0.718/unit on November 23, 2022. LODE value is now down 76.1% compared to that value. The 24-hour price range for LODE units has been $0.13- $0.369 per unit. At press time, LODE is currently trading at $0.173 per piece.
What do you think of the Lodestar Finance hack on Saturday? Let us know your thoughts on this topic by leaving comments below.
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