DeFi Platform Raft Pauses Stablecoin Minting Due to Security Vulnerability
Raft, a DeFi platform, halted the minting of its stablecoin, known as R, after identifying a security vulnerability on Friday. The company assured existing users that they could still repay their positions and receive their collateral while they investigate the issue.
Social media users pointed out that onchain data suggested a hacker had exploited the platform by burning millions worth of ether. Wintermute Head of Research Igor Igamberdiev explained that 6.7 uncollateralized R stablecoins were minted and converted into ether before being sent to the null address due to a coding mistake.
R Stablecoin Depreciates
Following the security incident, the R stablecoin depegged from its usual $1 value, plummeting to as low as $0.18 before partially recovering to $0.78. This fluctuation was reported by CoinGecko at 6:34 p.m. ET.
As of now, Raft has not provided any further comments on the matter.
Hot Take: Security Breach Highlights Risks in DeFi
This incident serves as a reminder of the potential risks associated with decentralized finance platforms and underscores the importance of robust security measures in place to protect user funds and assets. It also highlights the need for continuous monitoring and prompt response to security vulnerabilities in DeFi ecosystems to mitigate potential damages and maintain investor confidence in these emerging financial technologies.
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