Radiant Capital, a decentralized finance (DeFi) lending protocol, has temporarily halted its operations on the Ethereum layer2 network Arbitrum after suffering an exploit that resulted in the loss of 1,900 ETH, equivalent to $4.5 million. The protocol received a report of an issue with its newly created native USDC market on Arbitrum, prompting the Radiant DAO Council to pause lending and borrowing markets while the incident is investigated.
Blockchain security firms, including CertiK, have identified the attack as a flash loan attack. The attacker manipulated the liquidity index and exploited a rounding issue in the rayDiv() function during deposit() and withdraw() operations, draining the lending pools. The Radiant USDC contract’s calculation also had a rounding issue, which the attacker took advantage of by inflating the index parameter to a higher volume.
While fake Radiant Capital accounts have been posting phishing links on social media platform X, the official account of the protocol has urged the community to verify information from official channels and be cautious of misinformation or fake links. Despite the exploit, the total value of assets locked on the protocol remains relatively unaffected, currently standing at around $315 million.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | Radiant Capital, DeFillama, X, CertiK, Beosin Alert |
| Currencies | Ethereum, USDC |
| Securities | None |
