In the world of decentralized finance (DeFi), security remains a key issue. DeFi protocol Platypus Finance on the Avalanche network lost more than $2 million due to a security breach. This has intensified discussions about problems in the cryptocurrency space. 🚨💰

The hack was discovered by PeckShield. It appears that this was a flash loan attack targeting the AVAX-sAVAX liquidity pool. Flash loans allow borrowers to receive large amounts without collateral, but with quick repayment. However, this can be used by attackers to manipulate the market or find vulnerabilities in the system.

This is not the first time Platypus Finance has had its security breached. In February 2023, the protocol lost $8.5 million due to an attack on the USP stablecoin. These incidents raise questions about the protocol's security measures and the problems of DeFi in general.

The overall picture shows that the crypto industry faces serious security challenges. Immunefi data shows that Web3 platforms have lost over $1.2 billion due to security breaches this year. Experts believe that the solution may lie in verifying the identity of participants in transactions.

Conclusion: The events surrounding Platypus Finance are a reminder of the problems in the DeFi world. Addressing these security issues is an important step for user trust in the platforms.