DeFi Exploit Collapses LUSD Stablecoin To Zero
Linear Finance experienced an attack on September 21, causing the drain of all LUSD liquidity on PancakeSwap and Ascendex. The attacker minted an unlimited supply of LAAVE, traded it to LUSD on the Linear Exchange, and sold the tokens on PancakeSwap and Ascendex decentralized exchanges.
The Linear Team has halted all smart contracts and bridges on the DeFi protocol, and no updates have been made on the protocol’s X feed since the initial alert. They have engaged an industry-leading team to track the attackers and share wallets with major exchanges and authorities. Restoring the protocol and preventing further damage for users will be their top priority until the issue is fully resolved.
Linear Finance’s total value locked at $8 million, according to DeFiLlama, and it appears to have not tanked due to a DeFi exploit.
(With inputs from Shikha Singh)
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