The DeFi liquidity market, Radiant Capital, has lost approximately $4.5 million worth of ETH in a hacking incident. The hacker exploited the newly created native USDC market after 6 seconds of activation, resulting in a loss of 1.9k ETH to the protocol.
The Radiant team shared a post citing that they have received a report of the issue and that the Radiant DAO Council has paused lending-borrowing markets on Arbitrum. The team is currently investigating the exploit while assuring that “no funds are at risk.”
“A detailed postmortem will be released once the issue is fully resolved, and normal operations on the protocol on Arbitrum once the investigation is complete,” said the team.
According to PeckShield, the hacker employed a popular trick of exploiting a time window that occurs when a new lending market is activated.
The exploit is inherited from popular DeFi lending markets such as Compound and Aave which depend on a known rounding issue in smart contracts.
Radiant Capital is a decentralized liquidity marketplace deployed on LayerZero that allows depositing and borrowing assets across multiple chains.
This is so far the second DeFi exploit within the first 3 days of 2024. In the first major hack of this new year, Orbit Chain suffered a loss of $82 million just yesterday.
