Opyn Removes Liquidity From Uniswap After $370K Stolen in DeFi Exploit

Summary (IA Generated)

Attackers have exploited a vulnerability in the Opyn ETH Put contract to walk away with more than $370,000.

According to blockchain records, the attackers received both their original Ethereum (ETH) deposits and USDC options.

4 exploit-c5565c528ad2″ rel=”noopener noreferrer nofollow”>blog from Opyn, the platform estimates losses from the exploit at 371,260 USDC but said this amount may change.

“This exploit allowed an attacker to ‘double exercise’ oTokens and steal the collateral posted by certain sellers of these puts.

We are working hard on understanding this issue so we can let help users as best we can.

— opyn (@opyn_) August 4, 2020Attempting to prevent further abuse of this loophole, Opyn recovered 439,170 USDC of collateral from outstanding vaults using a white hat hack, effectively returning it to Put sellers.

According to Opyn co-founder Alexis Gauba in a Discord chat session, the platform has offered to buy any ETH Put oTokens “at above market prices,” which she said were 20% above the best ask price at Deribit.

The last update she posted stated Opyn was working on a plan “to mitigate impact for ETH put sellers.