DeFi protocol Indexed Finance lost $ 16 million

A decentralized finance (DeFi) protocol called Indexed Finance has fallen victim to an attack by malicious actors.Aboutthe developers of the project reported this in their blog. As a result of the "devastating" attack, the protocol lost $ 16 million in various tokens.

According to the developers, the target of the attack wastwo indices - DEFI5 and CC10. An attacker exploited a pool rebalancing vulnerability. The Indexed Finance protocol offers users a DeFi portfolio management similar to ETFs and Asset Managed Indices.

To provide a service, the protocol uses poolsassets, similar to the model of another protocol, Balancer, with different percentage distribution of the token in the pool or index. The Uniswap oracle is used to calculate the percentage, prices and dynamics of tokens.
DeFi Loans

For the attack itself, the attacker took a flash credit for$ 156 million in UNI, AAVE, COMP, CRV, MKR and SNX tokens. With such a large loan on hand, the attacker manipulated the percentage of redistribution of tokens in the pool. The management itself was made possible by including a new token in the index. The attacker chose the native sushiswap token (SUSHI) for this.

According to the estimates of the analytical firm PeckShield, inAs a result of re-creating indexes and other manipulations, the attacker stole 15 ETH, 226 900 UNI, 7500 AAVE, 6400 COMP, 845 800 CRV, 516 MKR, 45 400 SNX, 33 200 LINK, 5200 YFI, 17 800 UMA and 131 600 BAT for a total amount of about $ 16 million

Indexed developers have already announced that they intend todiscuss compensation and next steps to get the project back to work with the community. For now, Indexed will focus on protecting the protocol from manipulation.

Amid the news, the native token of the NDX project fell by almost 27%. At the time of this writing, the price of the token in the NDX / USDT pair is $ 2.38. The capitalization of the project decreased to $ 8.2 million.

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