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HomeMarketsDeFi Protocol Linear Finance Suffers Major Attack And LUSD Stablecoin Hits $0

DeFi Protocol Linear Finance Suffers Major Attack And LUSD Stablecoin Hits $0

On September 21, Linear Finance, a decentralized finance (DeFi) protocol, fell victim to a security breach, marking the most recent event in a string of DeFi incidents this month. This attack focused on the protocol’s Linear USD (LUSD) token, significantly impacting its liquidity on platforms such as PancakeSwap and Ascendex.

Unraveling the Linear Finance Attack

Through an unprecedented maneuver, the assailant successfully minted an unchecked supply of LAAVE. These assets were swiftly converted to LUSD on the Linear Exchange. The newly acquired LUSD tokens were offloaded on various decentralized platforms.

In a precautionary move, the Linear team suspended all smart contract operations and inter-protocol bridges. This information was disseminated through a blog post. However, since the preliminary notification, the DeFi protocol’s Twitter channel remains silent.

Demonstrating their commitment to rectifying the situation, the Linear Finance leadership has sought expertise from a top-tier industry team. Their primary objective is to trace the culprits and ensure they face legal consequences. They’ve also collaborated with major exchanges and law enforcement agencies, providing them with data on the wallets involved in this vicious act.

The team’s dedication is unwavering, with their main focus being repairing the protocol and mitigating any harm experienced by their user base. As of this moment, the extent of the attack or the precise losses incurred remains undisclosed.

The DeFi Protocol’s Inner Workings

This protocol operates as a hub for cross-chain liquid and synthetic asset trading. At its core lies a collateralized debt pool. This feature empowers users to use collateral in exchange for minting Linear USD, a central medium for synthetic asset transactions on the Linear Exchange. The governance and regulation of this protocol hinge on the LINA token.

This token serves a dual purpose: enabling voting rights and acting as a vehicle for staking rewards. Alongside LINA, Linear Finance has the LUSD token, a stablecoin anchored to the US dollar’s value, instrumental for trading synthetic assets.

The repercussions of this attack were harsh. The LUSD stablecoin witnessed a staggering 99.95% drop in its valuation. Despite the protocol maintaining most of its total value locked (TVL), the prospect of LUSD’s price resurgence appears dim.

The post DeFi Protocol Linear Finance Suffers Major Attack And LUSD Stablecoin Hits $0 appeared first on CryptoMode.

Jerry Rolon
Jerry Rolonhttps://etrendystock.com/
After working for 7 years as a Internet Marketer, Jerry now aims to explore the journalistic side of Internet. With his impeccable knowledge in this domain, he churns out some of the best news articles from the internet niche. With respect to acedamics, Jerry earned a degree in business from California State University.

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