Deus Finance, a decentralized finance (DeFi) protocol, has suffered a security breach that has resulted in a loss of more than $6 million in its stablecoin DEI. The attack was carried out by a hacker who exploited a vulnerability in the BNB Smart Chain (BSC) on May 5th, causing a loss of over $1.3 million. The attacker also targeted the arbitrum network, resulting in a loss of more than $5 million.
The protocol paused all contracts and burned the DEI tokens to prevent further damage. The team is currently investigating the backing of DEI tokens and will create a recovery plan after analyzing the balances and snapshots. DEI is used as a collateral mechanism for third-party instruments built on the Fantom protocol and has dropped by 30% over the past 24 hours, trading at $0.20.
This is not the first time Deus Finance has been hacked; it was previously exploited in March 2022 in a flash-loan attack, resulting in losses of over $ 3 million. Deus Finance is a decentralized marketplace for trading digital and non-digital assets on the Ethereum blockchain.