Ethereum DeFi Platform Makina Hit by Flash Loan Exploit, Loses $4M in ETH

Makina, a growing decentralized finance (DeFi) protocol operating on the Ethereum blockchain, confirmed early this morning that it suffered a sophisticated flash loan exploit, resulting in the theft of approximately $4 million worth of Ether (ETH). The attack highlights the persistent vulnerabilities within complex DeFi architectures, particularly concerning price oracle manipulation.

Preliminary forensic analysis suggests the attacker executed a series of maneuvers within a single block transaction. The method utilized an uncollateralized flash loan borrowed from a major lending protocol. These funds were then used to aggressively manipulate the liquidity and price feed of a key token pair utilized by Makina’s collateral assessment system. By temporarily skewing the spot price of the asset, the attacker was able to drain significant reserves from the platform’s pools at discounted rates before repaying the initial flash loan, netting the substantial profit.

The Makina development team reacted swiftly upon detection, announcing that all core smart contract functionalities, including deposits, withdrawals, and certain lending operations, have been temporarily paused to prevent further losses. The team has initiated a full security audit and is collaborating with leading blockchain security firms and exchanges to trace the movement of the stolen funds, which currently reside in an externally owned account (EOA).

In a statement released to the community, Makina apologized for the incident, assuring users that the vulnerability has been isolated and that strategies for remediation and potential user compensation are being prioritized. The exploit marks one of the largest single-instance flash loan attacks this quarter, sending ripples through the DeFi market and renewing calls for stronger, more decentralized oracle mechanisms.

Source: Ethereum DeFi Platform Makina Hit by Flash Loan Exploit, Loses $4M in ETH