A custom FlashLoopAdapter used to manage leveraged Aave v3 positions has been exploited on Ethereum, leaving two Safe wallets with losses estimated at $305,000 after an attacker bypassed the module's access controls.
AAVE was up 8.11% over 24 hours in the price snapshot at 1:26 p.m. ET on Oct. 2.
The exploit highlights the critical need for rigorous security audits of third-party modules in DeFi, as vulnerabilities can lead to significant financial losses. Aave v3 exploit drains up to $310K after Safe module attack.
AAVE was trading at $176.15 after reaching the milestone, with a 24-hour gain of 8.83%.
Founder Stani Kulechov highlighted the protocol's code-based lending system and called for more borrowing and lending to move onchain.
The address accumulated the tokens from Sept. 2 at an average purchase price of $2,671.25 per Ether.
From Jan. 25 to Feb. 9, the company counted 382 automated repayments and estimated the positions held $446.3 million in collateral.
DeFi Saver's automation highlights the potential for reducing liquidation penalties, enhancing stability and efficiency in DeFi markets. DeFi Saver says its automation shielded $446.3 million in Aave V3 collateral during a selloff.
The spot price was recorded at 10:26 a.m. ET (14:26 UTC) Oct. 1.
The entity transferred $5.97 million in USD Coin to Kraken before withdrawing AAVE valued at $6.2 million about two hours later.
The whale transferred 5.97 million USDC to Kraken before withdrawing 39,018 AAVE, valued at approximately $6.2 million.
Stani Kulechov said the protocol is considering a burn for Aavenomics 3.0, while no proposal, vote, amount or launch date has been set.