The flash loan attack on the Binance Smart Chain (BSC) has become a daily affair. The DeFi protocol has become increasingly vulnerable to attackers using the (BSC) platform. In the third flash loan attack in a week, AutoShark Finance was the youngest victim.
Third Flash Loan Attack on the Binance Smart Chain
“Exploiter used $36,800,000, 100,000 BNB for the attack, and approximately 2,500 BNB was exploited — $822,800. 100,000,000 SHARK tokens were minted and used to drained all the liquidity in the LP pool because our token market cap was small (only at $2,000,000 approx) SHARK tokens, which are sold immediately via 1inch -> AnySwap.”
According to CoinGecko, the SHARK token lost more than 95% of its value last week. As shown in the chart below, SHARK’s trading price was higher than $2.0 on May 18th. At press time, it has fallen to a low of $0.05.
AutoShark Finance Says All Funds are Safe
AutoShark Finance confirmed in the blog post that no vault has been compromised and all funds are safe. The deposit feature is currently disabled and the DeFi protocol will be back in service from June 1st after fixing some issues and taking all precautionary measures.
If users want to withdraw funds, they can still access them through Panther Pools. AutoShark Finance has announced that it will burn all SHARK shares used in the exploit. In addition, they have formulated a compensation plan. The plan description:
“We will be issuing a new token $JAWS to migrate and compensate the Original SHARK Holders for lost Market Cap (there were zero losses from our Vaults). The new token, $JAWS, will be distributed to all SHARK and LP Holders based on the snapshot on the block: https://bscscan.com/block/7698695”
With the advent of DeFi investors and commercial exploited agreements, BSC has become vulnerable to flash loan attacks. Both last week and this week, PancakeBUNNY and Bogged Finance were also victims of such attacks.