DeFi protocol Linear Finance was attacked on September 21, with the hacker draining liquidity from its Linear USD stablecoin.
Linear Finance Has Been Subjected To A Hacker Attack
DeFi protocol Linear Finance was attacked on September 21, with the hacker draining liquidity from its Linear USD stablecoin. According to a blog post, the attacker was able to manufacture a limitless amount of lAAVE tokens before exchanging them for lUSD on the Linear Exchange and selling them on PancakeSwap and Ascendex, effectively bringing the lUSD price to zero.
Linear Finance responded by suspending contracts that allowed token minting, burning, or swapping, disabling its lUSD bridge contract, and monitoring the attacker by revealing linked wallet addresses with key exchanges and authorities. The protocol is now trying to repair the damage caused by the exploit to users.
“Restoring the protocol and un-doing the damage for our users will be our highest priority until the issue is fully resolved,” said Linear Finance.
Linear Finance has not yet provided an update on the status of the investigation into the attack or the timeline for restoring the liquidity of the Linear USD token. However, the company has stated that it is committed to providing its users with a secure and reliable platform for decentralized finance.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
