QuickSwap, a layer 2 decentralized exchange, has lost $220,000 as a result of a flash loan attack, the team behind the project tweeted on Monday. The developers said the exploit took place on the Market XYZ lending market with the Curve Oracle. Qi DAO, an issuer of the miMatic stablecoin, was also linked to the attack.
QuickSwap's contracts are unaffected and no user funds were compromised, they pointed out. The developers added:
"We are encouraging users with funds deposited in Market xyz's open markets on QuickSwap to withdraw them now, as we are in the process of closing them down."
As a result of the attack, QuickSwap Lend has been closed. Analysts at PeckShield believe that the attack was performed by manipulating price to borrow funds. The QuickSwap team has encouraged Market XYZ to "fully compensate Qi Dao for their losses."
