Security Incident · ETH Ecosystem
Chi Protocol Smart Contract Logic Vulnerability: $8.50K Reported Loss
Chi Protocol (a DeFi stablecoin protocol issuing $USC backed by LSTs/LRTs on Ethereum) was exploited due to a logic error in the ArbitrageV5 contract’s burn() function.
- Reported loss
- $ 8,500
- Attack category
- Smart Contract Logic Vulnerability
Incident Overview
The attacker used a flash loan to buy heavily depegged $USC cheaply on a thin Uniswap V2 pool and burned it to redeem full-value collateral (weETH/stETH/WETH) at the hardcoded $1 peg, without the burn function checking the actual peg (unlike the mint function). This resulted in approximately $8,500 loss, nearly draining the protocol’s reserves.
Sources & References
This record presents information attributed to the linked sources. Incident dates describe the original event, not a new report. Reported loss figures reflect the source record and are not current market valuations.