2023-09-22 16:33:43
Decentralized financial protocol Linear Finance recently reported an attack in which attackers completely drained the liquidity of its Linear USD (LUSD) token. And September has not been too easy for DeFi so far either, attackers have been very active targeting various platforms. On September 21, Linear Finance reported that attackers had siphoned off the entire LUSD liquidity on both PancakeSwap and Ascendex. The attacker was able to create an unlimited amount of LAAVE and then exchange the liquid asset for LUSD on the Linear Exchange. The tokens were then sold on PancakeSwap and Ascendex decentralized exchanges. Linear Finance’s stablecoin crashed The development team behind Linear Finance immediately shut down all smart contracts and bridges on the protocol. Since the announcement, Linear Finance has not given any more status regarding the events. We know that all the wallet addresses involved in the theft were shared with major exchanges and authorities. However, it is currently unknown how much money was lost. Incidentally, the protocol also supports the trading of liquid and synthetic assets between blockchains. It has a escrow pool that allows users to create LUSD in exchange for collateral once morest which synthetic assets (representing other assets) can be traded on the Linear Exchange. The protocol is governed by the LINA token, which can be used for voting or staking. There is also another token, LUSD, which is a stablecoin pegged to the US dollar. According to the data, the total amount pledged on the protocol is 8 million dollars. In any case, this amount was not reduced to zero following the attack. The same cannot be said for stablecoin. When the liquidity pools were drained, the LUSD dropped to zero. The price of the LINA token has not changed much, it is still traded around 0.01.
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