USP Stablecoin loses dollar peg, DeFi Protocol Platypus suffers $8.5M attack

Platypus Finance, a Decentralized Finance (DeFi) protocol, was hit by a flash-loan on Thursday. CertiK security firm is investigating. Tweet. The exploit could result in a loss of $8.5 million.

Platypus USD (USP), a protocol’s stablecoin lost its peg to the US dollar due to the exploit. It fell to 48cs from its $1 anchor according to CoinGecko.

Platypus team member says, “For now, all operations are paused till we get more clarity.” Posted In the protocol’s Discord Server.

Platypus, an automated market maker that uses the Avalanche Blockchain to allow crypto traders to swap stablecoins, is built on Platypus. It holds $59 million in digital assets, which is significantly lower than the $1.2 billion record set last March. Data DefiLlama shows

Flash loans are uncollateralized borrowing that traders use to make quick profits from arbitrage opportunities. Flash loans are often used by exploiters to drain and destabilize digital assets from DeFi protocols.

By David Warsh

David Warsh is a leading expert in the field of cryptocurrency and blockchain technology. With over a decade of experience in the industry, he has a deep understanding of the intricacies of digital currencies and the potential they hold for revolutionizing various industries.