Makina Hack

On January 20, 2026, Makina Finance suffered a $5 million exploit through oracle manipulation when an attacker used a 280 million USDC flash loan to manipulate MachineShareOracle price data, draining the DUSD/USDC Curve pool, with the majority ($4.14M) frontrun and captured by an MEV builder.

The attacker obtained a flash loan of 280 million USDC and used it to artificially manipulate price data in the MachineShareOracle, which the Makina Finance protocol relied upon for accurate pricing. By distorting the oracle's price feed, the attacker created a discrepancy that allowed them to drain the DUSD/USDC stablecoin pool on Curve Finance. However, an MEV (Maximal Extractable Value) builder detected the exploit transaction in the mempool and frontran the attacker, intercepting approximately $4.14 million of the stolen funds before they reached the attacker's addresses.

The remaining stolen assets, totaling approximately $880,000 to $3.3 million, were distributed to the attacker's wallets. CertiK detected the exploit and flagged the suspicious activity, prompting Makina Finance to activate security mode across all Machines as a precautionary measure. The team confirmed the issue was isolated to DUSD liquidity provider positions on Curve, with underlying assets held in Machines remaining unaffected, and strongly advised LPs in the DUSD Curve pool to withdraw their liquidity immediately.

Attack Transaction:

https://etherscan.io/tx/0x569733b8…0651f5