Warp Protocol Hack

Exploitation of WarpFinance via flash loans resulted in a loss of approximately $7.8 million.

The attacker initiated the exploit by taking four different flash loans of 2.9M DAI + 344.8K WETH from dYdX and UniswapV2. They then deposited the dYdX flash loan into the UniswapV2 pair (WETH-DAI), minting 94.349K LP tokens in return. These tokens were transferred to WarpVaultLP as collateral.

The attacker then swapped 341K WETH for 47.6M DAI via UniswapV2, causing DAI to become very expensive and doubling the LP token price. With the inflated LP token price and collateral value, the attacker was able to borrow 3.86M DAI and 3.9M USDC from WarpFinance, totaling about $7.8 million. The attacker then returned the flash loans to dYdX and UniswapV2.

Smart contract used in the attack:

https://etherscan.io/address/0xdf8bee86…3dbacb

Transactions involved in the attack:

https://ethtx.info/mainnet/0x8bb8dc5c…595090

https://etherscan.io/tx/0x8bb8dc5c…595090