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The DeFi project Value DeFi fell victim to a so-called “flash loan exploit”, which caused damage of almost 6 million US dollars.
The attacker in question used two “flash loans” from other DeFi projects in order to use them to use the exchange rate differences at Value DeFi to their own advantage. So he just found a “gap in the system” and cannibalized it or “exploited” it.
Explanation: Flash loans are crypto loans that are approved without the borrower having to deposit a corresponding deposit. This is possible because the respective loans are literally repaid “in a flash”, because they still have to be paid within the same blockchain transaction.
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