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

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Attackers exploited a Uniswap trading loophole to get away with more than $370K. 3217 Total views.

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

One of the first members of Crypto Twitter to report on the theft, DegenSpartan, stated on Aug. 4 that the traders used flash loans to buy Ethereum Put oTokens from Uniswap.

In a Aug. 4 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."

Opyn realized something was happening within the day and issued a statement on Twitter, saying it had removed liquidity from Uniswap during its investigation.

We have removed liquidity from Uniswap in the mean time.

Opyn August 4, 2020 Attempting 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."