Lodestar Finance was scammed of around $6.5 million
The exploiter altered the value of the plvGLP coin by 83% by manipulating its exchange rate.
The Ethereum scaling-solution package Arbitrum-based lending platform Lodestar Finance was the target of a hack and ultimately exploited for around $6.5 million.
The project’s Twitter account announced on December 10 at 4:14 p.m. Eastern Time that “Protocol was exploited and deposits have been drained.” The tweet also stated that the project had “set all interest rates to zero” in order to prevent the supply and borrow balances from shifting while the team considered its recovery options.
The exploiter was successful in manipulating the exchange rate of the plvGLP token to 1.83 GLP for each plvGLP, which made the token 83 percent more valuable than it should have been. The exploiter might then destroy all available liquidity on Lodestar Finance by incurring bad debt by using the inflated tokens as collateral.
Lodestar Finance made the observation that other holders of plvGLP were able to profit from the exploiter’s conduct by withdrawing 1.83 GLP for each plvGLP they held.
It has been determined by the loan platform that 2.8 million GLP, which had a value of $2.4 million at the time, maybe recouped. Additionally, it is seeking to bargain with the person who is exploiting it.