Flash loan Attack on Cream finance
Another Defi platform exploited. Attackers drained around $18 million dollars.
Recent hack attacks on DeFi based platforms clearly indicate how vulnerable Defi platforms are and needed to fix these loopholes. A latest hack attack on Cream finance can be seen where hackers didn’t try to go through the bug or vulnerability to hack the platform. Hackers only used the biggest loophole of the DeFi concept, that is flash loan.
Read also: Flash loan attack on DeFi platform Popsicle Finance
Defi flash loan attack drained around $18 million. No official announcement came from the team of Cream finance. But this information is shared by the @ico_analytics on twitter.
Well here we have to wait for the official announcement to know the exact amount of the loss that cream.finance faced.
The details of the drained fund are also shared by the ICO_analytics, which can be seen here.
Cream.Finance is a Defi platform, which offers lending services for individuals and also the developers of this platform claims that Cream.finance is a fully automatic platform ( fully decentralized).
This is not the first time, when this cream.finance faced a flash loan attack, already they faced loan attack 12 feb in the same year, where they lost around $37.5 million . In recent months, burgerswap also faced flash loan attack. See the full report here.
FlashLoan & Attack
FlashLoan is basically an option which gives an opportunity for the users to earn money by giving a type of price stability by moving funds from one exchange to another and that results in the price equality at different platforms at the same time.
In general at traditional platforms, users can’t do anything because of low volume trade but at Defi based exchanges, low volume means it is easy to fluctuate the price of a token with a big difference and that high difference in the price of the token results in open door for flash loan gate, a loophole for the Defi platform.
Because of the high price difference between the two platforms, Defi allows users to transfer funds from one exchange without any custody. Hackers usually target such Defi exchanges where they can fluctuate the price and drain the fund through flash loan loopholes.
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