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DeFi protocol token NFD crashes by 99% after a flash loan attack

DeFi protocol token NFD crashes by 99% after a flash loan attack

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Beosin also highlighted another vulnerability with the NFD protocol that could be further used for another type of flash loan attack. The security firm said that the price could be manipulated since they are calculated “using the balance of USDT in the pair, so it may lead to flash loan attack if exploited.”

Flash loan attacks have been increasingly popular among hackers due to the low risk, low cost and high reward factors. On Wednesday, Avalanche-based lending protocol Nereus Finance became a victim of a crafty flash loan attack resulting in a loss of $371,000 in USD Coin (USDC). Earlier in June, Inverse Finance lost $1.2 million in another flash loan attack.