Radiant Capital Begins Repayment After $4.5M Flash Loan Cyberattack
Summary:
Radiant Capital, the cross-chain lending blockchain, has started to repay debt following a flash loan attack that cost the protocol $4.5 million. An initial repayment of approximately 1,190 Ether ($2.6 million) has been made with an outstanding debt of around 720 Ether ($1.6 million) to be covered in the next 90 days. The debt will be repaid by leveraging the OpEX funds and potentially the DAO reserve funds, following the RFP-27 approved plan. The exploit occurred on January 2nd, after an attacker identified a rounding problem in Radiant's codebase affecting the USD Coin (USDC) lending pool on the Arbitrum network.
Radiant Capital, the cross-chain loan blockchain, has begun to address its debt following a flash loan attack earlier this month that left the protocol $4.5 million short. As per a statement released on January 23, Radiant successfully executed its first payment which covered 1,190 Ether ($2.6 million) and is now left with around 720 Ether ($1.6 million) in lingering debt. "We are planning to completely settle the outstanding debt in the ensuing 90-day timeframe by means of OpEX funds, as suggested by RFP-27, and we'll potentially pull from DAO reserve funds if there's liquidity before the 90-day limit," announced Radiant's team. The repayment strategy was in line with the RFP-27 plan, greenlit on January 8, where 73% of users gave their assent to utilize existing treasury and operating expense funds within the Radiant DAO. The DAO treasury held a balance of $5.2 million at the point of approval, and the protocol revenue was estimated to be around $500,000 each month. "It's of utter importance that we refill the protocol and fully pay off all bad debts so as to assure the protocol's safety and unrestricted access to deposits," stated the development team. On the second day of the year, an attacker spotted and exploited a decimal issue in Radiant's codebase. Consequently, Radiant's USD Coin (USDC) lending pool on the Arbitrum network fell prey to a $4.5 million loot. This bug allowed the attacker to profit from repeated deposits and withdrawals. "At the root of this problem is not something novel: It essentially took advantage of an opportunity window when there's a new market in play in a lending market (which was a clone of the famous Compound/Aave)," observed the blockchain analytics firm Beosin. At the moment of the attack, the Radiant exploit extracted an equivalent of 1.3% of the total value it had locked.
Published At
1/23/2024 8:30:00 PM
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