What happened
Carson on BNB Chain was exploited in a flash-loan-assisted AMM price-manipulation attack. The attacker used temporary BUSDT liquidity to distort a Carson/BUSDT pool, then repeatedly swapped through a non-standard fee-on-transfer-compatible route to extract value before repaying the flash loans.
A custom, closed-source AMM setup handled the Carson fee-on-transfer token unsafely. Its swap and reserve accounting could be driven into an attacker-favorable price imbalance; flash liquidity made the manipulation large enough to drain the pool.
Case & protocol details
Attack Timeline
The attacker nested flash loans from five DODO pools, used 1.5 million BUSDT to buy Carson and severely skew the Carson/BUSDT pool, then made 50 repeated Carson-to-BUSDT swaps plus a final sell. The flash loans were repaid in the same transaction; the profit came from the compromised pool's accounting and pricing behavior, not from DODO.
Evidence & learning
Sources and on-chain records
- report Report twitter.com
- report BNB Chain AvengerDAO weekly report bnbchain.org
- transaction Transaction bscscan.com
- code Code reference github.com
- analysis DeFort study yebof.github.io
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