Those using AAVE - pls refrain from activities for now (Patreon)

Published:

2022-10-21 16:35:28

Imported:

2023-01

Content

Crypto Robinhood: Avraham Eisenberg, the trader who has claimed responsibility for the recent $116M Mango Markets exploit, has publicly revealed a potential way for highly capitalized entities to exploit the REN market on Aave V2.

According to Eisenberg’s proposed “trading strategy”, an entity would need to supply 100M USDC and borrow $85M worth of REN tokens against it. Then, with a different account, the entity would need to deposit the REN tokens and borrow 50M USDC, which would be used to buy more REN tokens. This process would need to be repeated multiple times.

The threat comes at a time when crypto investors are on edge about the potential for exploits and hacks in the space. Attackers have extracted $718M from DeFi protocols in October alone, making it the worst month on record according to Chainalysis. An exploit of Aave, one of the first and largest DeFi protocols, would further dampen confidence.

Thanks Sanjay for bringing to our attention.

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Mango Markets Exploiter Says Aave Could Be Vulnerable To A Similar Attack - The Defiant

Proposed 'Trading Strategy' Would Require Hundreds Of Millions In Capital Avraham Eisenberg, the trader who has claimed responsibility for the recent $116M Mango Markets exploit, has publicly revealed a potential way for highly capitalized entities to exploit the REN market on Aave V2.