Radiant Capital Faces Flash Loan Attack, But Maintains Token Price Stability
Today, reports from BeosinAlert reveal that Radiant Capital fell victim to a flash loan attack, resulting in a substantial loss of $4.5 million. The attack exploited a vulnerability in the contract, specifically manipulating the index parameter, which, later on, served as a denominator.
Radiant Capital @RDNTCapital was under a flash loan attack with a loss of $4.5M.
Attacker: https://t.co/L7fXlF8VXP
The attacker manipulated the index parameter (which later served as a denominator) to become extremely large. The contract has a rounding issue in its… pic.twitter.com/8AdY7pjaKE
— Beosin Alert (@BeosinAlert) January 3, 2024
The root cause of the breach lay in a rounding issue within the contract’s calculations, leading to a cumulative precision error.
The attacker strategically inflated the index parameter, amplifying the precision error, and consequently, enabling profitable maneuvers through repeated deposit and withdraw operations.
Radiant Capital Reaction and Price Action To Watch
The Radiant Capital team corroborated the incident through an official statement on X, stating, “Today, we received a report of an issue with the newly created native USDC market on Arbitrum. After validation by Radiant developers and the wider Web 3 security community, the Radiant DAO Council paused lending/borrowing markets on Arbitrum temporarily while this is investigated further. No current funds are at risk.”
Despite the ongoing investigation and the security measures implemented by Radiant Capital, the token’s price remains stable at the time of this publication, currently standing at $0.329. The hack, while impactful in terms of the financial loss suffered, has not translated into immediate volatility in the token’s market value.
In essence, Radiant Capital’s resilience in maintaining token price stability amid the flash loan attack reflects the community’s confidence and the effectiveness of measures taken by the Radiant DAO Council to address and contain the situation.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news!
Image Source: serezniy/123RF// Image Effects by Colorcinch
Filed under: Bitcoin - @ January 4, 2024 2:50 am