Arbitrum-based lending platform Lodestar Finance was exploited on Dec. 10, 2022, according to a tweet from the project’s Twitter account on Saturday. Community reports detail that Lodestar lost roughly $6.9 million from the vulnerability.
Lodestar Finance loses $6.9M in exploitation, TVL dips, LODE drops 53%
Another decentralized finance (DeFi) platform, Lodestar Finance was Hacked for $6.9 million In one exploit, many reports description. ,[The] The protocol was exploited and the deposit was siphoned off,” said the official Twitter account of Loadstar. “We have set all interest rates at 0 so that supply and lending balances are not rising while we weigh up recovery options.”
Lodestar says the hacker “manipulated the exchange rate of the plvGLP contract” and then “supplied plvGLP collateral to Lodestar and borrowed all available liquidity.” This allowed the exploiter to cash out “what they could.” However, a “collateralization ratio mechanism prevented them from fully cashing out the plvGLP,” the team noted on Saturday.
Via the Team Discord channel, members of the Lodestar team explained that they have halted lending and liquidation activity. Data from Defillama.com indicates that the total value locked (TVL) in LoadStar was reduced from nearly $7 million to just $11.06 million. The project’s native cryptocurrency, Lodgestar (LODE), declined 53% in value against the US Dollar in the past 24 hours.
LODE recently tapped an all-time high at $0.718 per unit, 18 days ago on Nov. 23, 2022. LODE’s value is now down 76.1% from that value and has seen a 24-hour price range of around $0.13 to $0.369 per unit. At press time, LODE is exchanging hands for $0.173 per coin.
