Defi Lending Protocol Rari Capital Suffers $80 Million Exploit

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Evening

So, defi hacks continues to plague the crypto industry, with another defi protocol getting exploited yesterday. Apparently, hackers managed to drain $80 million funds from Rari Capital’s Fuse Lending Pools.
Blockchain and smart chain audit firm, BlockSec tweeted on Saturday that multiple pools belonging to Rari Capital were drained by hackers exploiting reentrancy vulnerability.

Ethereum based Rari's Fuse Pools are permissionless lending pools allowing anyone to lend or borrow ERC-20 tokens with no minimum funds requirement. One of the major user of Rari's Fuse Pools is defi protocol Fei, which supplies its algorithmic stable coin FRI to lending pools to increase liquidity. Fei Protocol merged with Rari in December last year, with both protocols managing to grind up to $2 Billion liquidity.
Shortly after the hack Fei team acknowledged the exploit, claiming that they have identified the root cause of exploit and paused all the borrowing to avoid any further damage. Fei have also offered $10 million bounty to hackers for the return of stolen funds.

Blockchian data shows, the hacker have already started laundering funds via coin mixing tool Tornado Cash, with 22,673 ETH worth $64 million still laying in hacker wallet.
This is not the first time Rari Capital have been exploited, as back in May last year the protocol was hacked for $10.6 million. Back then, Rari Capital team used their RGT allocations to reimburse the affected users.

How the protocol is gonna manage reimbursements this time, it is still unknown as the hacks equates to 60% of the total users funds in the Rari's Ethereum pools.

With defi exploits continuing to rattle the crypto industry, it is a shame to see big defi protocols getting exploited multiple time using previously reported exploit schemes like reentrancy vulnerability.