• An attacker exploited Aave and Yearn Finance with a flash loan.
• The address associated with the attack stole at least $10 million.
• Aave responded to the attack by saying that it was looking into it.

One of the oldest and most battle-tested decentralized finance (DeFi) protocols, Aave, has just experienced an exploit.

On Thursday, an exploiter attacked Aave and Yearn Finance, another DeFi protocol, using a flash loan and drained more than $10 million.

According to blockchain security firm Lookonchain, all the stolen $10 million is in stablecoins DAI, USDC, BUSD, TUSD, and USDT.

An exploiter attacked @iearnfinance and @AaveAave.

The exploiter got over $10M in stablecoins.

Including:

– 3,032,142 $DAI
– 2,579,483 $USDC
– 1,785,091 $BUSD
– 1,512,528 $TUSD
– 1,193,756 $USDThttps://t.co/nT0PhL1cDC pic.twitter.com/ukOQagk1n5

— Lookonchain (@lookonchain) April 13, 2023

The team behind the protocol said on Twitter that they are aware of the exploit and that the attack hasn’t impacted Aave v2 and v3.

We are aware of this transaction, and it did not have an impact on Aave V2 and Aave V3.

We are now confirming whether there is any impact on Aave V1, the oldest version of the protocol which has been frozen. We’re monitoring the situation closely to ensure no further concerns. https://t.co/uM9wtLNJMl

— Aave (@AaveAave) April 13, 2023

Aave Chan Initiative founder Marc Zeller said on Twitter that the exploit targeted Aave v1, the oldest protocol version, frozen since December 2020. 

According to Zeller, no user could deposit or increase borrow size on Aave v1, which made the issue “unlikely but not impossible.”

Aave V1 has been frozen since Dec 2022, so no user can deposit or increase borrow size making issue unlikely but not impossible.

We’re aware of the situation and research is ongoing. More info when we have more clarity.

— Marc Zeller 👻 💜 🦇🔊 (@lemiscate) April 13, 2023

Aave’s governance token AAVE had no material reaction to the news. AAVE is trading at $77.88, up 0.7% on the day, according to data from CoinGecko.

On the Flipside

• The full details about the exploit are still unavailable.

Why You Should Care

Aave is known to be resilient to exploits. Seeing one of the oldest DeFi protocols attacked and drained for millions of dollars is concerning. That’s why investors should always do their own research before deciding where to invest their funds.

Read more about the Euler hacker returning everything they had stolen:

Euler’s $200M Hacker Finally Returns All “Recoverable Funds”

Read more about Ethereum’s Shanghai upgrade:

What Is Ethereum’s Shanghai Upgrade? ETH Staking Withdrawals Explained

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• Source: https://dailycoin.com/aave-suffers-flash-loan-exploit-10m-drained/