- The attacker lost 4 ether in the exploit
- The R stablecoin lost its peg to the US dollar
- It is now trading for around $0.70
Raft, a decentralized finance (DeFi) platform, lost the equivalent of $3.3 million in ether (ETH) after suffering an exploit yesterday afternoon. Interestingly, the attacker also lost money in the attack, CoinDesk wrote.
The hacker sent the bulk of the 1,577 ETH he drained from Raft to a burn address, leaving just seven ether for himself and destroying the rest.
Assailant lost money
His burn address received 18 ether via privacy mixer Tornado Cash prior to the exploit according to blockchain data, most likely to fund transactions. There was 14 ether after it. The difference went toward funding transfers and paying blockchain fees.
The DeFi platform's R stablecoin failed to maintain its peg to the US dollar, dropping to around $0.50 from its $1 price. Later, it regained part of its value, increasing to around $0.70.
The anatomy of the attack
Raft cofounder David Garai confirmed in a tweet that an attacker had targeted the platform. He minted R stablecoins, then sold them to drain automated market maker liquidity. He withdrew collateral from Raft at the same time.
Garai told CoinDesk the platform was trying to compensate users through their sDAI in the Peg Stability Module.
Raft issues the R stablecoin with liquid staking ether derivatives as collateral. The DeFi lending platform uses derivatives such as Lido's stETH. Users who lock up ether derivatives can mint the R token.
Stablecoin market cap is consistently declining
The US dollar, to which stablecoins are pegged, is enjoying a high exchange rate with other fiat currencies, but its success doesn’t extend to stablecoins. The stablecoin market capitalization has been declining consistently. This summer, it fell down to its levels in August 2021, or $127 billion. At the moment, it is even lower - $125 billion according to data of CoinCodex.
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