Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesStocksEarnInstitutionAI & More
2,000,000% APY Trap: $6 Million Drained in Ethereum DeFi Exploit

2,000,000% APY Trap: $6 Million Drained in Ethereum DeFi Exploit

UTodayUToday2026/07/06 13:18
By:UToday

On Monday morning, major multichain protocol Summer.fi, formerly Oasis.app, was hit by a sophisticated hacker attack. The attacker managed to drain the project's automated vaults and withdraw about $6 million in DAI stablecoins. The incident was quickly detected by leading security firms Blockaid.

The 2,000,000% trap

This hack stood out because of its abnormal mechanics. The hacker used a massive flash loan worth $65.4 million to artificially distort liquidity inside the "LazyVault_LowerRisk_USDC" pool. This vault had been positioned by developers as a lower-risk instrument, while its security was overseen by Block Analitica.

At the moment of the manipulation, the pool's algorithms suffered a critical failure, causing the displayed yield, or APY, of the conservative vault to briefly jump to an absurd 2,080,000%. It was through this window of distorted pricing that the hacker was able to instantly withdraw user funds.

Main affected vault: LazyVault_LowerRisk_USDC (LVUSDC), risk-managed by BlockAnalitica.

LVUSDC’s displayed APY briefly spiked to ~2.08M%.

The largest current holder is 0x8741e8f...4130, which appears to be associated with Torben Jorgensen…

— PeckShield (@PeckShield) July 6, 2026

For Summer.fi, this incident continued a series of problems inside its multichain infrastructure, which spans Ethereum, Base and Arbitrum. Over the past year alone, the protocol had already faced frozen withdrawals because of the USDX stablecoin depeg, narrowly avoided an attack through the rsETH project, and blocked a malicious governance proposal at the last moment after it exploited old access permissions.

The new hack occurred against the backdrop of a difficult year for the entire Web3 industry. According to analysts, by the start of Q3 2026, total DeFi-sector losses from cyberattacks had already exceeded $840 million, with the main blow coming in a record April that accounted for more than $640 million.

The exploit mainly affected large players. According to on-chain intelligence, the biggest loss was suffered by a wallet linked to Torben Jorgensen, co-founder of Web3 company UDHC, who had deposited about 8.6 million USDC into the affected pool shortly before the attack. All stolen DAI was quickly converted through Uniswap V3 pools.

At the time of writing, the Summer.fi team has temporarily paused all compromised contracts, but no official statements about compensation have been released yet.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

Understand the market, then trade.
Bitget offers one-stop trading for cryptocurrencies, stocks, and gold.
Trade now!

You may also like

AI demand drives TSMC to accelerate capacity expansion, 2nm monthly production aims for 120,000 wafers by year-end

According to reports, industry giants such as Apple, Nvidia, and AMD have collectively increased their orders by 10% to 20%, directly boosting TSMC's 2nm monthly production capacity to 120,000 wafers by the end of the year, which exceeds the previous estimate by more than 20% and brings forward the 2027 target by two years. For the first time in history, five factories will ramp up production simultaneously, and the annual compound growth rate of capacity from 2026 to 2028 will reach as high as 70%.

华尔街见闻•2026/09/28 04:26

Long-term US Treasury Sell-off Continues! 10-Year Treasury Yield Breaks 5.2% Again, “AI Boom vs. Rising Financing Costs” Narrative Showdown Intensifies

On Monday, oil prices rose and US Treasury bonds were sold off again as former US President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, heightening concerns about inflation.

智通财经•2026/09/28 03:16

Banks Have Been Earning Effortlessly from Idle Funds for Years—Will AI Agents Change Everything?

For years, banks have profited from customers' idle funds, but AI agents may be about to change this situation.

智通财经•2026/09/28 03:11

Goldman Sachs: US stocks are showing a "strong index, weak confidence" pattern; catch-up rally may become the main theme of the next phase

Goldman Sachs stated that the current U.S. stock market is showing an unusual pattern: while index performance is strong, investor confidence remains weak. This suggests that the market still has further upside potential, and stocks that previously lagged behind leading AI stocks may soon experience a catch-up rally.

智通财经•2026/09/28 03:06
Goldman Sachs: US stocks are showing a "strong index, weak confidence" pattern; catch-up rally may become the main theme of the next phase