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Inverse Finance exploited again for $1.2M in flashloan oracle attack Inverse Finance exploited again for $1.2M in flashloan oracle attack
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Inverse Finance exploited again for $1.2M in flashloan oracle attack

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Just two months after losing $15.6 million in a price oracle manipulation exploit, Inverse Finance has again been hit with a flashloan exploit that saw the attackers make off with $1.26 million in Tether (USDT) and Wrapped Bitcoin (WBTC). Inverse Finance is an Ethereum based decentralized finance (DeFi) protocol and a flashloan is a type of crypto loan that is usually borrowed and returned within a single transaction. Oracles report outside pricing information. The latest exploit worked by using a flashloan to manipulate the price oracle for a liquidity provider (LP) token used by the protocol’s money market application. This allowed the attacker to borrow a larger amount of the protocol’s stablecoin DOLA than the amount of collateral they posted, letting them pocket the difference. The at...