- Makina Finance loses $5M in sophisticated smart contract exploit.
- DeFi protocol attacked using flash loan to manipulate oracle pricing.
- Security firms report varying estimates of stolen funds post-breach.
A recent exploit has targeted the decentralized finance protocol Makina Finance, with hackers draining approximately $5 million from one of the protocol’s stablecoin pools. According to CertiK, the incident earlier this week highlighted a sophisticated attack that utilized a 280 million USDC flash loan to manipulate the system and siphon funds.
Manipulation of Oracle Leads to Funds Drain
The breach specifically affected Makina Finance’s DUSD/USDC Curve stablecoin pool, with CertiK’s analysis revealing that the attacker borrowed 280 million USDC and used 170 million to manipulate the MachineShareOracle. This oracle is essential for pricing in the pool, and by altering it, the attacker was able to trade 110 million USDC against the roughly $5 million pool to extract the funds.
Other blockchain security firms have provided varying estimates of the stolen amount. GoPlus Security suggests a loss of $5.1 million, while PeckShield estimates the damage at around $4.13 million in Ether. Interestingly, a major portion of the stolen funds was seized by an MEV builder, capturing $4.14 million of the drained assets, as reported by CertiK.
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Makina Finance, which offers institutional-grade strategy vaults, has not yet confirmed the exploit through its official communication channels. Initially, the protocol’s team responded to the incident on Discord, acknowledging awareness of the reports but refraining from confirming the loss. They later issued a more detailed statement indicating that the attack appeared to be limited to liquidity provider (LP) positions on Curve and advised affected users to withdraw their funds.
Despite the breach, Makina Finance’s total value locked (TVL) stands at a substantial $100.49 million, according to data from DefiLlama. The protocol launched earlier in 2025 and has gained traction within the decentralized finance (DeFi) space.
Makina Finance Faces Increased Scrutiny After Major Exploit
This latest breach underscores the vulnerabilities that continue to plague the decentralized finance sector. Makina Finance’s swift response, or lack thereof, in addressing the situation has drawn attention from both the crypto community and security experts. While the protocol’s team has been cautious in their communication, it’s evident that attacks of this nature are becoming increasingly sophisticated.
The DeFi space has seen numerous similar exploits in recent years, with security firms warning of rising risks associated with smart contract vulnerabilities and manipulations of oracles. As blockchain technology grows, so do the methods of exploitation, making it essential for platforms to strengthen their security protocols to protect users’ assets.
Makina Finance’s situation is a stark reminder of the need for constant vigilance in the world of decentralized finance. As the industry matures, incidents like these highlight the importance of robust security measures and transparent communication in maintaining user trust and confidence in the system.
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