Ethereum DeFi Platform Makina Hit by Flash Loan Exploit, Loses $4M in ETH
Hackers exploited Ethereum-based DeFi platform Makina Finance, stealing 1,299 ETH (about $4 million) by manipulating the price of a USDC liquidity pool. The culprit used a $280 million USDC flash loan, employing $170 million to alter the MachineShareOracle that sets prices for the DUSD-DUSDC pool. The attacker added liquidity, inflated prices, and then withdrew funds for profit. However, an MEV builder frontran the draining transaction, capturing most of the stolen assets, now split between two wallets. Makina states the exploit was isolated to its DUSD-DUSDC pool on Curve; other platform assets remain unaffected. Makina has activated security measures and advised liquidity providers to remove funds from the affected pool. Flash loan attacks like this are increasingly common, though industry data shows overall DeFi security is improving, with 2025 hack losses comparatively lower even as DeFi activity rebounds.
