DeFi Platform Linear Finance In Crisis As LUSD Stablecoin Tanks To Zero After Exploit

DeFi protocol Linear Finance suffered an exploit yesterday, draining liquidity from its LUSD stablecoin.

The Linear Finance squad confirmed the exploit, saying each LUSD liquidity connected decentralized exchanges Ascendix and PancakeSwap was drained. The incidental led to LUSD dropping to zero.

The protocol tweeted that it investigated the incidental and asked users not to bargain oregon commercialized the LUSD stablecoin.

What happened?

The exploit saw the attacker mint an unlimited proviso of LAAVE and past commercialized the plus for LUSD connected Linear Exchange. The exploiter sold the LUSD connected PancakeSwap and Ascendix, removing each the liquidity.

Linear Finance claims that it is present investigating the incidental and said it has shared the wallets that took portion successful the exploit with large exchanges and authorities truthful they tin way the stolen assets.

“Restoring the protocol and un-doing the harm for our users volition beryllium our highest precedence until the contented is afloat resolved,” It added.

Following the incident, Linear Finance has paused each protocol contracts and disabled the Linear fund contract. It asked for users’ patience and support, promising to update regularly.

Performance of LUSD

LUSD stablecoin has fallen importantly successful the past 24 hours. The token fell 100%, dropping to $0.0003760. LUSD was trading astatine $0.91 earlier the exploit. Although LUSD is simply a stablecoin, it has traded arsenic precocious arsenic $1.45 earlier now.

Meanwhile, Linear Finance’s LUSD should not beryllium confused with Liquity Stablecoin (LUSD), currently trading astatine $0.99 per CoinMarketCap data.

The station DeFi Platform Linear Finance In Crisis As LUSD Stablecoin Tanks To Zero After Exploit appeared archetypal connected CryptoSlate.