Chainalysis said Hexagate detected an attack on the LpdFi protocol yesterday, with losses estimated at about $700,000. According to the monitoring details provided, the attacker used a flash loan of roughly $44 million and manipulated the price of the LPD token on a decentralized exchange, pushing it up by 71x. The inflated price was then used to fake a deposit worth around $140 million inside the protocol, even though the tokens involved were valued at only about $2 million.
One second later, just after crossing the protocol’s daily interest settlement boundary, the attacker collected a full day of interest on that exaggerated position. The move then triggered the liquidation of the protocol’s entire liquidity pool and released the stolen funds. After repaying all loans, the attacker walked away with an estimated profit of about $700,000. The funds were then moved through Relay and TornadoCash.
Chainalysis said Hexagate detected an attack on the LpdFi protocol yesterday, with losses estimated at about $700,000.
The attacker borrowed roughly $44 million through a flash loan and artificially pushed the price of the LPD token up by 71x on a DEX. The attacker then used tokens worth only about $2 million to fake a deposit of roughly $140 million within the protocol.
One second later, just after crossing the protocol’s daily interest settlement boundary, the attacker collected a full day of interest on the exaggerated position. That move triggered the liquidation of the protocol’s entire liquidity pool and paid out the stolen funds.
After repaying all loans, the attacker made about $700,000 in profit and immediately moved the funds through Relay and TornadoCash.
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