Arbitrum-based lending platform Lodestar Finance was hacked on Dec. 10, 2022, according to the project’s Twitter account Saturday. Community reports detail that Lodestar lost approximately $6.9 million due to the vulnerability.
Lodestar Finance loses $6.9 million in an exploit, TVL drained, LODE drops 53%.
@LodestarFinance on Arbitrum has just been exploited 🚨
The situation is still developing and post-mortem is still ongoing, but it looks like the entire protocol has been drained so far. That would represent a $6.9M loss. pic.twitter.com/cOnFBtV2an
– BowTiedPickle.eth | Solidity Shipper (@BowTiedPickle) December 10, 2022
Another decentralized finance platform (defi), Lodestar Finance has been hacked for $6.9 million in an exploit, a number of reports detail. “The protocol was exploited and the deposits were drained“, said the official Twitter account of Lodestar. “We have set all interest rates at 0 so that the bid and loan balances do not move while we evaluate recovery options.“
Lodestar states that the hacker has “manipulated the exchange rate of the plvGLP contract“, then “provided a plvGLP guarantee to Lodestar and borrowed all available cash.“This allowed the hacker to cash out.”what he could“. However, a “collateralization ratio mechanism prevented them from fully cashing out the plvGLP“, the team noted on Saturday.
Via the team’s Discord channel, Lodestar team members explained that they have paused borrowing and liquidation activities. Data from defillama.com indicates that the total value locked up (TVL) in Lodestar has been drained from nearly $7 million to just $11.06. The lodestar project’s native crypto-currency (LODE) has lost 53% of its value against the U.S. dollar over the past 24 hours.
LODE recently hit an all-time high of $0.718 per unit 18 days ago on November 23, 2022. LODE is now down 76.1% from that value and has experienced a 24-hour price range of approximately $0.13 to $0.369 per unit. At press time, LODE is trading for $0.173 per unit.