Sonne Finance Suffers $20 Million Hack on Optimism on May 14, 2024

May 15, 2024, 01:06 AM

Sonne Finance, a decentralized finance (DeFi) lending protocol on the Optimism chain, suffered a major security breach on May 14, 2024. The attack resulted in a loss of approximately $20 million. The exploit involved flash loan attacks where the attacker borrowed VELO tokens, sent them to soVELO contracts, and created multiple new contracts to drain various tokens from Sonne Finance. The breach exploited a common vulnerability in forks of Compound Finance and involved a time-locked contract. The protocol has since paused all markets on Optimism to contain the breach. Sonne Finance has assured that its Base market remains safe.