Arrakis V1 Hack

What happened

On August 23, 2026, a legacy Arrakis V1 / G-UNI ENS–WETH liquidity-manager vault on Ethereum was exploited for roughly 2.94 WETH (about $7,000) through a flash-loan-funded Uniswap V3 spot-price manipulation.

Technical root cause

The vault’s mint() and burn() share valuation relied on the Uniswap V3 pool’s instantaneous slot0() price without a TWAP or deviation guard, allowing a transiently manipulated price to affect the valuation.

How it happened

The attacker flash-borrowed 1,800 WETH, skewed the ENS–WETH pool’s instantaneous price, minted vault shares at the distorted valuation, restored the price, then burned the shares for a more favorable token mix.

Protocol details

Classification Oracle Manipulation

Protocol Type Liquidity Manager

Implementation language Solidity

Protocol links Website @ArrakisFinance

Security review history

• CertiK View report
• WatchPug View report

Evidence

• analysis SlowMist incident record: Arrakis V1 hacked.slowmist.io
• analysis DeFiLlama defillama.com
• analysis Arrakis V1 & V2 deprecation notice arrakis.finance

Understand the attack patterns

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Oracle Manipulation & Price Manipulation