The exploit was first discovered by the blockchain data and security firm PeckShield, which reported the ongoing attack and informed the protocol along with its users to take necessary actions.
While confirming the attack, Exactly Protocol paused the smart contract and said it is actively investigating the issue.
Exactly Protocol had a $38.5 million TVL before the exploit and it has currently decreased by more than 50% at $16 million, according to the data from DeFiLlama.
Another post from DeDotFi confirms that the protocol has lost an estimated 7160 ETH or approximately $12 million.
In order to execute the hack, the attacker transferred funds from Ethereum to Optimism through an exploiter contract and bridged back stolen funds to Ethereum.