DeFi protocol Arcadia Finance has suffered a hack, losing $455,000 in the process.
The exploit, according to blockchain security company PeckShield, was made possible by flaws in Arcadia's code. According to PeckShield, the Optimism exploiter transferred 180 Ether ($305,000) and washed most of it through Tornado Cash, but the Ethereum exploiter stole about $100,000 and left it in the wallet.
Since the protocol attack, Arcadia Finance's total value locked has dramatically decreased by 76%, from $605,000 to $144,000. The company claims that Arcadia Finance is susceptible to further vulnerabilities since there is no reentrancy protection, which would prevent immediate liquidation from disabling the internal vault health check.