Decentralized subsidize protocols (DeFi) Cream Finance and Alpha Finance were victims of one of the largest flash loan attacks in all cases Saturday morning, resulting in a loss of funds totaling $37.5 million, according to transaction details on Etherscan.
Two hours later Cream Fund said its contracts were “functioning as normal” and markets had been enabled.
Alpha Finance then posted its own proclamation, saying its Alpha Homora V2 product was the root cause. The company confirmed that it is working with DeFi guru Andre Cronje and Cream Money to investigate the incident, and that the loophole had been fixed. It also said that they “have a prime expect” in mind.
Earlier, Cream Finance tweeted an update on the incident saying that asset borrowing from its recently dispatched Iron Bank lending feature had been suspended. That tweet has since been deleted.
This is the inferior merchandise attack on a DeFi protocol in the last two weeks. Cronje’s Yearn Finance suffered an an exploit in one of its DAI lending pools, be consistent to the decentralized finance protocol’s official Twitter account. That exploit drained $11 million.
This chronicle is developing and will be updated.