Flash Loan Attack on Polygon’s PolyBunny Platform
Polygon-based yield farming protocol faced a attack of flash loan which resulted into $2.4 million. They promised to give their users compensation for this loss.
PolyBunny Finance is a yield farming platform which is based upon polygon protocol. It is a Polygon and Quick Swap exchange version of the Binance Smart Chain (BSC).
PolyBunny Finance has published an article on 20 July about the attack on PolyBunny Finance and they said that their platform faced a flash loan attack on 16 July. which exploited $2.4 million.
According to the published post, they faced this attack because of the low liquidity in the pool. Attackers took advantage of low liquidity and then attacked the pool through flash loans. The team of PolyBunny confirmed that they will give compensation against the loss that their users faced and also they minted 2.1 million PolyBunny Tokens in the pool which is at price $2 ( very low ).
Flash loan is a facility that any user can use under high liquidity situations in a Defi based pool. So Low liquidity in the pool became a very tedious task to solve the problem of attack. On one side this is an advantage of Defi but another side it is disadvantageous because it causes flash loan attacks.
Related: Know more about flash loan attacks.
It seems that flash loan attacks have become much more common these days because Recently a attack in burgerswap can be seen. And also Aave faced a flash loan attack which resulted in loss of 1,281 Ethereum.
Read also: BlockFi Ordered to Stop Accepting New Customers
