Platypus Finance, an AVAX-Based StableSwap Project, Suffers a Security Breach

Yesterday, according to a report from PeckShield, it appears that the Avalanche ecosystem stablecoin trading project Platypus Finance may have fallen victim to a suspected hacking attack. At the time of the report, the project had suffered losses of approximately $1 million.

Platypus Finance responded to the incident with a post on the X platform, stating, “Due to suspicious activities in the protocol, we have taken proactive measures to pause all pools. Any further updates will be promptly communicated to the community.”

In the end, Platypus announced a loss of approximately $2.2 million in the sAVAX-AVAX pool. The team suspended the pool and initiated an investigation at 6:50 AM (UTC). With the assistance of the security platform Supremacy, they successfully recovered around 50,000 sAVAX and 7,000 AVAX from one of the attackers. The team is closely collaborating with security experts to identify and rectify vulnerabilities. Platypus will not restart the pool until these issues are fully resolved, and security measures are reinforced.

Platypus Finance is a stablecoin exchange project built on the Avalanche platform. It had received leading investments from Three Arrows Capital and DeFiance Capital and supported single stablecoin collateral. According to data from Defillama, Platypus Finance had a TVL (Total Value Locked) that reached as high as $1.25 billion, but it currently stands at only $8.96 million.

In February of this year, Platypus Finance experienced a hack that resulted in a theft. Their native stablecoin USP fell victim to a hack, causing a loss of $8.5 million in the main pool.