Avalanche-Based DeFi Protocol Suffers Second Attack

Platypus Finance, a decentralized finance (DeFi) protocol operating on the Avalanche network, has once again fallen victim to a security breach. The breach, confirmed by PeckShield, has resulted in the loss of more than $2 million from the platform.

Platypus Finance has taken action by temporarily suspending all its pools in response to the discovery of suspicious activities within the protocol.

While the exact details of the attack vector are yet to be officially confirmed, the incident appears to result from a flash loan attack. This attack specifically targeted the AVAX-sAVAX liquidity pool, according to The Block.

Platypus Finance has been a victim of a security breach before. A similar flash loan attack in February 2023 resulted in a loss of $8.5 million. The attackers targeted the platform's newly launched stablecoin, USP, emphasizing the vulnerability of new DeFi projects.

The crypto industry has witnessed a series of security breaches and hacks throughout the third quarter of the year. Certik reported losses of approximately $700 million for Q3, 2023, highlighting the importance of improving security and risk management in the DeFi sector.