Hassan Maishera
TL;DR
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Crypto platform Raft suffered an exploit over the weekend, losing $3.3 million in the process.
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Its R stablecoin lost its dollar peg following the exploit.
R Stablecoin Losses Its Dollar Peg After Raft’s Exploit
Decentralized finance (DeFi) platform Raft suffered an exploit on Friday, losing $3.3 million in ETH. However, the hacker may have suffered a loss in the attack.
According to the available on-chain data, the hacker drained 1,577 ETH from Raft and then sent 1,570 ETH to a burn address. This implies that the attacker destroyed most of the stolen coins, leaving only 7 ETH for themselves.
Blockchain data on Arkham also indicated that the attacker’s address received 18 ETH via the crypto mixer service Tornado Cash prior to the attack. The 18 ETH was to fund transactions during the hack.
Following the hack and paying the fees, the attacker’s crypto wallet was left with only 14 ETH, lower than the initial 18 ETH on the wallet. Thus, indicating that the hacker lost 4 ETH over the course of the attack.
The hack saw Raft's R dollar-pegged stablecoin immediately lose more than 50% of its value from its $1 price. The stablecoin has lost more than 88% of its value over the last few days and now stands at $0.1156.
There's been an exploit situation for @raft_fi where the exploiter minted R (which was then sold to drain AMM liquidity), and also managed to withdraw collateral at the same time
— DG (@davgarai) November 10, 2023
We are investigating - post-mortem will follow soon
Raft co-founder David Garai, while confirming the attack on X (formerly Twitter), revealed that the attacker minted R tokens, which then were sold to drain automated market maker liquidity. The hacker also withdrew collateral from Raft.
Raft is a DeFi lending platform that issues the R stablecoin. Its stablecoin is collateralized by liquid staking ether (ETH) derivatives such as Lido's stETH.
The platform’s hack came after Poloniex lost $114 million in cryptocurrencies to an attack on Friday.
