Alpha Finance
HackedDeFi · $ALPHA · born 2020 · ✝ 2021
A flash-loan attack on Alpha Homora drained ~$37.5M.
Alpha Finance was a DeFi suite whose Alpha Homora leveraged-yield product was exploited in February 2021. An attacker used flash loans to abuse pool-share accounting and extracted roughly $37.5M.
- Peak
- ~$37.5M stolen
- Cause
- Hacked
- Year of death
- 2021
☠️ Cause of death
A flash loan was used to manipulate pool-share accounting and mint inflated positions, draining lender funds.
📓 Lessons left behind
- —Pool-share math must resist flash-loan manipulation.
- —Leveraged products compound accounting bugs.
- —Integrations inherit each other's attack surface.
🌱 The idea that survived
Manipulation-resistant accounting
Drove scrutiny of share-price accounting that flash loans can distort within a single transaction.
#defi#flash-loan#leverage#yield