Secured Finance Suffers Attack with Losses of Approximately $104,000

The decentralized lending protocol Secured Finance was attacked on September 5, resulting in losses of approximately $104,000. The attack was due to the collateral being priced based on the average transaction price from the order book at that block. The attacker exploited self-trading to influence this price, allowing false lending positions to be counted as valid collateral. After initially deploying the contract, the attacker did not execute it immediately, but later conducted a flash loan and self-traded to inflate the price before withdrawing USDC. The original attack wallet rolled back due to insufficient gas fees, and about 48 seconds later, a general frontrunning bot named coffeebabe took away approximately 0.9 WBTC (about $72,000) and transferred around 28.8 ETH to the ultra sound money builder, keeping only about $29 for itself. Subsequently, another bot withdrew some USDC.

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