A flash loan attack has struck Dough Finance users, resulting in significant financial losses. On June 12, 2024, Cyvers, a security firm specializing in crypto attack detection, identified suspicious activity within the protocol. Following this discovery, Cyvers promptly notified Aave, a lending protocol, to assess any potential impact from the hacker. While Aave's pools remained unscathed, Dough Finance, an Ethereum-based liquidity protocol, bore the brunt of the attack. The breach only affected users with funds linked to the compromised smart contract. Despite containing the breach, concerns linger among Dough Finance users regarding fund safety and the platform's future use. Exploiting a vulnerability in Dough Finance's 'ConnectorDeleverageParaswap' smart contract, the hacker manipulated the system by bypassing data validation during flash loan calls. This loophole enabled the theft of approximately $1.8 million in ETH. The Dough Finance team is investigating the incident and enhancing security measures. Security experts advise users to transfer funds to safer platforms temporarily and refrain from interacting with Dough Finance's smart contracts. Read more AI-generated news on: https://app.chaingpt.org/news