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ID:

egd-finance-1013

Date:

Status:

Incident Count:

August 8, 2022

Verified

1

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REKT

Contributor:

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web3rekt.com

KYC By:

KYC:

None

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Audit By:

Audits:

None

Loss Amount:

36,000

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Recovered:

-

Rewards:

Currency:

USD, EGD

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Key Indicators

Platform:

Type:

Category:

Method:

Data Sources:

Binance Smart Chain

Assets

Token

Flash Loans

Extended Method:

Price arbitrage

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Days in Operation:

0

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According to PA News, SlowMist reported that the EGD Finance project on BSC was hacked, resulting in the unexpected withdrawal of funds from its pool. The attacked was made possibly by a flaw in the price oracle mechanisms for calculating rewards as being too simplistic, thus resulting in the token price being manipulated by flash loans for profit.

In other words, the price of EGD is simply derived on the ratio of EGD to USDT, accordingly, the hacker exploited this weakness by obtaining a large USDT in the pool for the flashloan, and thereby reducing the price of EGD token, which allow the manipulation of the claimAllReward function to obtain more reward tokens. Refer to more technical discussion from BlockSec - https://twitter.com/8olidity/status/1556542582418972674/photo/1

Approx. $36k ins BUSD was taken.

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