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The DEI token has been compromised and has lost its $1 peg. Recently, the token was valued at $0.3 but lost that value during the breach. The attack was traced back to a critical technical flaw in the token contract. At the time of this writing, the stablecoin is trading at $0.2.
The project is now seeking assistance from the community to address the aftermath. Currently, the DUES token has experienced a decline of over 33% following the aforementioned news.
For all white hat hackers who managed to recover funds during the DEI exploit on 05/05/2023
We are confirming 0x7f5ae1dc8d2b5d599409c57978d21cf596d37996
As a DEUS team owned multisig on Arbitrum.
Please reach out to us if you have not done so already. https://t.co/7w5y6Nh2EM— DEUS (@DeusDao) May 5, 2023
A critical implementation flaw in the token contract refers to an issue in the code that affects the contract’s operation or security.
For instance, a significant implementation flaw in the DEI stablecoin’s token contract permits anyone to create additional DEI tokens without any restrictions or oversight. This vulnerability allowed a hacker to exploit the token contract and manipulate the DEI price.
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All financial instruments and protocols built on the Deus Finance infrastructure utilize DEI as collateral.
Deus Finance aims to provide enterprise-level blockchain derivatives to the public. It serves as the foundation for innovative on-chain digital derivatives such as synthetic stocks, commodities, foreign exchange, and cryptocurrencies.
Deus Finance was breached on April 28. According to PeckShield, the incident led to losses of up to $13.4 million, with the majority of the stolen assets being Ethereum (ETH).
The hack was facilitated by a flash loan that manipulated the price oracle, which retrieves data from the StableVW AMM – USDC/DEI pair. This was executed using 800 ETH, which was withdrawn from Tornado Cash and transferred to Fantom via MultiChain. The stolen funds were converted to ETH and deposited into the hacker’s account at the end of the attack.
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