LpdFi Protocol Loses $700K to Flash Loan Attack and Price Manipulation

LpdFi suffered a $700K loss after an attacker used a $44M flash loan to inflate LPD token prices by 71x, faking a $140M deposit to drain interest rewards.

Woofun AI reports that the LpdFi protocol experienced a security breach resulting in approximately $700,000 in losses. The attacker utilized a $44 million flash loan to artificially increase the price of LPD tokens by 71 times on a decentralized exchange. This manipulation allowed the attacker to deposit tokens valued at roughly $2 million while registering a fake deposit of approximately $140 million within the protocol. By timing the transaction to cross the daily interest settlement boundary, the attacker collected a full day’s interest for the inflated position, triggering the liquidation of the protocol’s liquidity pool. After repaying the flash loan, the attacker retained the $700,000 profit and moved the funds through Relay and TornadoCash.