INVERSE FINANCE

DESCRIPTION OF EVENTS

"DOLA Borrowing Rights replace interest rates with a fixed fee that can earn you more."

"Inverse Finance is a decentralized autonomous organization that develops and manages the FiRM fixed rate lending protocol and DOLA, a debt-backed decentralized stablecoin. Originally founded by Nour Haridy in late 2020, the protocol is now governed by Inverse Finance DAO, a collective of crypto enthusiasts. Our code base is open source and maintained by the community."

"This was not the first time Inverse Finance suffered a multi-million dollar exploit this year. Earlier this April, the protocol fell prey to its first price manipulation hack and lost $15.6 million in DOLA, ETH, WBTC, and YFI."

"the lending protocol took to Twitter, explaining the attack and noted that the attacker used “capital-intensive manipulation of the INV/ETH price oracle on Sushiswap.” This further resulted in “a sharp rise in the price of INV, which subsequently enabled the attacker to borrow $15.6 million”. However, unlike the latest tweet from the protocol, last time they had offered “a generous bounty in exchange for returning the borrowed funds”."

"This morning Inverse Finance's money market, Anchor, was subject to a capital-intensive manipulation of the INV/ETH price oracle on Sushiswap, resulting in a sharp rise in the price of INV which subsequently enabled the attacker to borrow $15.6 million in DOLA, ETH, WBTC, & YFI"

"The manipulation was not a flash loan attack and was un-related to Inverse's smart contract or front end code. All future borrows on Anchor are temporarily paused."

"The plan to be proposed to governance is to ensure all wallets impacted by the price manipulation are repaid 100%. We have multiple avenues for accomplishing this and will provide updates as the DAO discusses our options."

"The person or persons behind the price manipulation are encouraged to reach out via Twitter DM or Discord and discuss a generous bounty in exchange for returning the borrowed funds."

Explore This Case Further On Our Wiki

Inverse Finance, a decentralized organization, experienced a hack through price manipulation of its INV/ETH price oracle on Sushiswap. The attacker manipulated the oracle, leading to a rise in the price of INV tokens, allowing them to borrow $15.6 million worth of DOLA, ETH, WBTC, and YFI. Inverse Finance paused future borrows on its money market, Anchor. This incident follows a similar exploit in April that resulted in a $15.6 million loss for the protocol. The organization plans to propose a repayment plan to its governance and is encouraging the attacker to return the funds in exchange for a bounty.

DeFi Hack: Inverse Finance Exploited For The Second Time This Year   - Vauld Insights (Aug 25)
@InverseFinance Twitter (Aug 25)
Inverse Finance (Aug 25)
Introduction - Inverse Finance (Aug 25)

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