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.
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