Cream Finance Flash Loan Attacker Replaces 1 Million DAIs with 555.4 ETHs
According to reports, according to Paidun\’s early warning monitoring, the Cream Finance Flash Loan attacker has replaced 1 million DAIs with 555.4 ETHs and transferred them to Trad
According to reports, according to Paidun’s early warning monitoring, the Cream Finance Flash Loan attacker has replaced 1 million DAIs with 555.4 ETHs and transferred them to TradeOgre.
Cream Finance attacker swapped 1 million DAIs for 555.4 ETHs and transferred to TradeOgre
In recent reports, it has been stated that according to Paidun’s early warning monitoring, the Cream Finance Flash Loan attacker has replaced 1 million DAIs with 555.4 ETHs and transferred them to TradeOgre. This has caused a lot of speculation and concern in the crypto community. In this article, we will dive deep into what Cream Finance is, what a flash loan is, what happened with the attack, and what this means for the crypto world.
What is Cream Finance?
Cream Finance is a decentralized finance (DeFi) lending protocol that allows users to lend and borrow assets. It is built on the Ethereum blockchain and is entirely open source. Cream Finance is widely used in the DeFi space and has a significant market share compared to other similar platforms. It is one of the most popular sites for borrowing and lending cryptocurrencies.
What is a Flash Loan?
A flash loan is a type of loan that enables a user to borrow funds without providing collateral. This is possible because the loan is only available for a small amount of time, usually just a few seconds. The borrower must repay the loan and any associated interest during this short period. If they fail to repay the loan within the allotted time, the transaction will be reversed.
Flash loans are becoming increasingly popular in the DeFi world because they provide instant liquidity to users without the need for physical assets. They also enable users to carry out complex transactions that may not be feasible otherwise.
What Happened with the Cream Finance Attack?
On February 12, 2021, Cream Finance suffered a flash loan attack. The attacker borrowed 1 million DAI (a stablecoin pegged to the US dollar) from Aave, a lending protocol, using a flash loan. The attacker then used the borrowed DAI to purchase 9,000 units of AMP token on decentralized exchange (DEX) Dodo. The attacker then flash-borrowed another 5,700 units of AMP token from Dodo and deposited them to the Cream Finance platform.
Once the attacker had deposited the AMP tokens on Cream Finance, they borrowed over 4,000 ETH from the protocol. The attacker then repaid the original 1 million DAI to Aave and returned the 5,700 AMP tokens to Dodo. Finally, the attacker sold the ETH for DAI and bought 555.4 ETH, which they transferred to the TradeOgre exchange.
What Does This Attack Mean for the Crypto World?
This attack has once again highlighted the risks and vulnerabilities of the DeFi world. While flash loans provide liquidity and flexibility to users of DeFi platforms, they also create opportunities for attackers to exploit weaknesses in the system.
This incident is a reminder of the need for enhanced security measures and the importance of carrying out rigorous audits of code and protocols. It is also a cautionary tale for users of DeFi platforms to be careful while managing assets and to take all necessary precautions to maximize their security.
Conclusion
The Cream Finance flash loan attack has triggered discussions about the need for better security measures in the DeFi space. Despite being a relatively new and innovative concept, DeFi platforms must prioritize creating secure protocols and standards to ensure the safety of user assets. Flash loans come with a significant level of risk; however, they are essential for DeFi users seeking instant liquidity. As DeFi continues to grow, so will the risks and opportunities.
FAQs
1. What is Cream Finance?
Cream Finance is a popular DeFi lending platform that allows users to borrow and lend assets.
2. What is a flash loan?
A flash loan is a type of loan that enables users to borrow funds without providing collateral.
3. What was the impact of the Cream Finance flash loan attack?
The attack has highlighted the need for enhanced security measures in the DeFi world and caution for users to secure their assets.
This article and pictures are from the Internet and do not represent qiAiAi's position. If you infringe, please contact us to delete:https://www.qiaiai.com/crypto/10106.html
It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.
Related recommendations
-
What does a Japanese yen numerical code mean (the currency code of Japanese yen)
What does a Japanese yen numerical code mean According to the latest announcement issued by the Bank of Japan, the Stablecoin (NANO) issued by the country consists of a Currency basket. These include new crypto tokens supported by five legal francs, such as US dollars, British pounds and euros, as well as Bitcoin (BTC) and Ethereum (ETH). These new assets will be converted into a “digital version of yen”. In this case, they will be exchanged with physical currencies issued by other countries Theoretically, a new Stablecoin can be used as a medium of exchange, while the other can be used as a means of value storage, because it is a new form of reserve. Therefore, “digital yen” also has functions similar to traditional cash systems, such as using credit cards to purchase goods or provide loan services. However, due to exchange rate differences and increased demand for bank deposits, this may result in its holders being unable to access…
-
NFT Sales Exceed $1 Billion in Q1 2023, But Takes a Hit in March and April
According to reports, NFT sales exceeded $1 billion in January and February 2023, however, sales figures for March and April decreased. According to Cryptoslam\’s latest NFT sales d
-
The Rise of Bitcoin NFT Protocol Ordinals: The Latest Milestone
According to reports, data shows that the total number of inscriptions on the Bitcoin NFT protocol Ordinals has exceeded 3 million.
The total number of Ordinals inscriptions has ex -
South Korean prosecutors claim that their extradition request for Do Kwon was earlier than the United States, which is inconsistent with the Montenegrin authorities
On March 30, a source from the South Seoul District Attorney\’s Office in South Korea refuted the claim made by the Ministry of Justice of Montenegro that \”the United States\’ extrad
-
Cyber Capital Founder Raises Concerns on Matic’s Centralization Risk
According to reports, Justin Bons, founder of Cyber Capital, tweeted that it did not support Matic and the risk of centralization was too high: Polygon\’s manage
-
Collab.Land Token Application Open
On February 23, according to the official Twitter, Collab.Land announced that the token application will be started at 6:00 p.m. (MT) on February 23 and will e…
-
What is Ant Machine (What is Ant Go)
What is Ant Machine. Ant Machine is the largest IT company in the world, with it
-
Rosfinmonitoring reports growth in Russian cryptocurrency market
According to reports, Yury Chikhanchin, director of the Russian Federal Financial Supervision Agency (Rosfinmonitoring), reported the current operation of the agency to Russian President Vladimir Putin. He said that the turnover of Russian cryptocurrency assets was growing, and the volume of Russian cryptocurrency transactions was close to 13 billion dollars. Regulators are monitoring the activities of more than 25000 cryptocurrency trading participants. The service also identified about a dozen financial organizations that provide assistance to them. Director of the Financial Supervisory Authority of the Russian Federation: Russia’s cryptocurrency trading volume is close to US $13 billion Analysis based on this information:The head of the Russian Federal Financial Supervision Agency, Yury Chikhanchin, has reported to President Vladimir Putin about the growing turnover of Russian cryptocurrency assets and the increasing volume of cryptocurrency transactions. In addition, regulators are currently monitoring the activities of more than 25,000 cryptocurrency trading participants, as well as a dozen financial organizations that provide assistance to them. This…
-
Understanding the Ethereum Client Prysm Version 4.0.2: Fixes and Optimization
On April 13th, according to official Twitter, the Ethereum client Prysm has released version 4.0.2, which includes fixing serious vulnerabilities in the interaction between the val
-
Ledger Launches Browser Plug-in for Secure Interaction with DApps
It is reported that Hardware Wallet Ledger has launched a browser plug-in that aims to provide a similar experience to encrypted wallets such as MetaMask. Ledger stated that it is not a hot wallet, but a cold wallet that allows users to interact directly using DApp via Bluetooth. In addition, it has two functions to ensure the security of users when interacting with encrypted applications: analyzing smart contracts and warning users if the transaction may be malicious, and simulating the transaction to show how it will affect the wallet. Ledger Launches Browser Plugins to Support Direct User Interaction Analysis based on this information:Hardware wallet provider Ledger has released a new browser plug-in that caters to users looking for secure interaction with decentralized applications (DApps). The Ledger plug-in has features that replicate those of encrypted wallets such as MetaMask, and it allows users to connect their cold wallets to DApps via Bluetooth. It is worth noting that Ledger’s plug-in is not…