Raft Finance floats user bailout plan after odd exploit
An attacker stole 1,575 ETH from Raft, then burned 1,570 of it
Raft Finance experienced a severe security breach on Friday when a hacker managed to exploit a vulnerability in the protocol, resulting in the loss of approximately $3.3 million in ether.
The protocol originated as a fork of Liquity that replaced ether with staked ether as the collateral source backing its stablecoin, R. The exploit caused R to deviate from its intended $1 peg.
That prompted the team behind Raft to confirm the vulnerability and pause further minting to prevent additional losses.
According to a post-mortem blog post published Monday, the attacker was able to mint 6.7 million R, which was then swapped for 1,575 ether ( ETH ) causing R to de-peg.
Read more: Liquity aims to build on safety record with V2 using staked ether
In a surprising turn of events, the attacker then sent 1,570 ETH to a burn address, effectively removing it from circulation. This action left the hacker with only 7 ETH from the stolen funds.
Prior to the attack, the hacker’s address had received 18 ETH through a crypto mixer service, suggesting a level of premeditation and planning for the attack.
The circumstances of this attack are unusual, in that the large majority of the stolen funds were burned, leading to speculation about the attacker’s motives. The loss may have been accidental.
It’s not yet clear what comes next for the protocol and its users. Developers have promised an “in-depth recovery plan this week, outlining the steps to address the situation and provide redress for affected users,” the team said in its post-mortem statement.
“The Raft community will have the opportunity to provide feedback on the proposed recovery plan before it is concluded and the recovery plan is executed,” it said.
Raft issued a governance token (RAFT) in an airdrop on Oct. 11, intended to be staked to provide holders with voting rights over the protocol. The price of RAFT has plummeted about 60% since the exploit, per Coingecko .
Total value locked (TVL) in the protocol peaked in July at $64 million, and has been on a steady decline since, according to DefiLlama — just $1.48 million remains as of today.
Meanwhile, the formerly dollar-pegged stablecoin R is volatile with very limited liquidity on a handful of decentralized exchange markets. Although the developers have suspended the creation of new R tokens, users can still repay their R-related debts to retrieve collateral that is locked in the protocol.
Don’t miss the next big story – join our free daily newsletter .
- ETH
- exploit
- mixers
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
New spot margin trading pair — HOLO/USDT!
FUN drops by 32.34% within 24 hours as it faces a steep short-term downturn
- FUN plunged 32.34% in 24 hours to $0.008938, marking a 541.8% monthly loss amid prolonged bearish trends. - Technical breakdowns, elevated selling pressure, and forced liquidations highlight deteriorating market sentiment and risk-off behavior. - Analysts identify key support below $0.0080 as critical, with bearish momentum confirmed by RSI (<30) and MACD indicators. - A trend-following backtest strategy proposes short positions based on technical signals to capitalize on extended downward trajectories.

OPEN has dropped by 189.51% within 24 hours during a significant market pullback
- OPEN's price plummeted 189.51% in 24 hours to $0.8907, marking its largest intraday decline in history. - The token fell 3793.63% over 7 days, matching identical monthly and yearly declines, signaling severe bearish momentum. - Technical analysts cite broken support levels and lack of bullish catalysts as key drivers of the sustained sell-off. - Absence of stabilizing volume or reversal patterns leaves the market vulnerable to further downward pressure.

New spot margin trading pair — LINEA/USDT!
Trending news
MoreCrypto prices
More








