How did an arbitrage trader gain 15.5 million BUSD with only 10BNB?

 



A genius trader(0x8d...217) gains 15.5 million worth of BUSD while Ankr Exploiter hacked and dumped aBNBc. Here's how he did:

  1.  the trader bought 183,884.92 $aBNBc with 10 $BNB via 1 inch; 
  2. exchanged 183,884.92 $aBNBc to 191,130.04 $hBNB via Helio protocol ($hBNB is the BNB collateral in Helio);
  3. Used 191,130.04 $hBNB to borrow 16,444,740.14 (16.4 million) $HAY on Helio, which is a Stablecoin issued by Helio ;
  4. Go back to 1 inch and swapped 16,444,740 $HAY for 15,504,986 (15.5 million) $BUSD.


You may ask again: how did the trader gain $15.5 million from the above steps?


Normally, the price of $BNB should be pegged at a 1:1 ratio to the price of $aBNBc.Traders will arbitrage when there is a price difference. This time, $aBNBc has completely de-pegged from $BNB. Therefore, he could buy 183.8K $aBNBc with only 10 $BNB.


Then, the problem falls on the Oracle of Helio Protocol. Oracles are used to provide price data streamed on the blockchain. Oracles bridge the off-chain world with the blockchain by publishing off-chain price information on-chain. If the price of $aBNBc is de-pegged from $BNB, then the trader cannot swap 191.1K $hBNB for 183.8K $aBNBc. At this time, the Oracle in the Helio Protocol did not work properly. $aBNBc is mistakenly coded as 1:1 to $BNB. And then the trader can profit by swapping to $hBNB.

When will you do it when you have 191.1K $hBNB? If the trader dumps on the market, it will have a significant impact on the price, resulting in significant slippage.Instead, he borrowed 16.4 million Stablecoin $HAY and swapped them for 15.5 million $BUSD.

Someone suspected that this trader was connected with the Ankr hacker. Nonetheless, he has previously engaged in arbitrage and earned more than 150 $BNB. If he's not relevant to the Ankr hacker, then he's really a genius.

 



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