Lodestar Finance Protocol of Arbitrum Gets Exploited
Lodestar Finance, a DeFi protocol on the Arbitrum ecosystem, has shared on Twitter post disclosing the news of its exploit. As per the protocol, the deposits on it have been taken away. Consequently, the protocol has placed the interest rates at 0. Furthermore, an exploiter has been successful in manipulating the plvGLP contract’s exchange rate.
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Arbitrum Ecosystem-Based Protocol ‘Lodestar Finance’ Witnesses an Exploit
The platform disclosed in its Twitter posts that the attacker changed the per-plvGLP to 1.80. After doing that, they offered Lodestar the plvGLP collateral. This enabled the exploiter to borrow the entirety of the available liquidity on the protocol. Nonetheless, it was mentioned by the platform that the protocol kept them from completely cashing out the whole plvGLP.
The platform additionally noted that a lot of the people holding plvGLP were also effective in being benefited from the respective opportunity. In this respect, they redeemed funds at approximately 1.83 GLP per plvGLP. As per Lodestar Finance, the exploiter moved on to burn approximately $3 million worth of GLP. The Lodestar asserted that the profit gained by the hacker on the respective exploit took into account the funds stolen from Lodestar extracted from the GLP burned by them.
The protocol moved on to say that in the whole exploited amount of up to $3 million a minimum of 2.8 million can be recovered at the moment and its actual worth is almost $2.4 million. Keeping this optimistic solution in view, the company assured that it will attempt to contact the entity responsible for this hack and discuss the matter with them.
Lodestar Finance Persuades the Attacker to Return the Funds
According to Lodestar Finance, the first move to be adopted by them would be to offer a bug bounty to the exploiter, making them consider this a white-hat exploit and return the funds after taking a suitable amount for themselves. In its official tweet, Lodestar Finance protocol has requested the attacker to consider the offer.
It has also provided 3 addresses linked to it through which the exploiter can contact the protocol for negotiation. If the exploiter agrees to this, they would return a major amount of drained funds to the protocol. In this case, the company will not take serious action against them. Furthermore, it remains to be seen if Lodestar Finance’s offer is acceptable to them or not.
