🚨 Major breach of the USPD protocol exceeding one million dollars!
A serious vulnerability in the $USPD protocol was exploited, leading to theft exceeding one million dollars, and the details are as follows:
• The attacker deposited approximately 3,122 $ETH as collateral
• Exploited a flaw in the minting mechanism that allowed him to mint an amount of USPD equivalent to ten times the value of the deposited collateral in a single transaction
• This resulted in the minting of about 98 million units of USPD from a single deposit!
The attacker then executed the following steps: 💥 Withdrew 237 stETH from the original collateral 💥 Exchanged large amounts of USPD via the Curve pool for approximately 300,000 USDC
⚠️ The attack reveals a fundamental and serious flaw in the Collateral Accounting system within the protocol, allowing for illicit liquidity amplification.
The team is currently working on assessing the damages and temporarily halting the affected contracts.
