TechFlow news — DeFi protocol Linear Finance has published a blog post stating that on September 21, 2023, the Linear Finance protocol was attacked, resulting in the complete depletion of all LUSD liquidity on PancakeSwap and Ascendex, causing the price of LUSD to drop to zero. The attacker was able to mint unlimited amounts of LAAVE and subsequently trade liquid assets for LUSD on the Linear Exchange, then sell the LUSD on PancakeSwap and Ascendex.
The Linear team has taken the following measures to protect the protocol, assets, and users:
- All protocol contracts that allow minting, burning, or swapping of tokens have been paused;
- The Linear Bridge contract for LUSD has been disabled;
- Hired a leading industry team to track down the attackers and bring them to justice;
- Shared known wallets involved in the attack with all major exchanges and authorities.
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