Regarding the Wault Finance Incident

This post was originally published on Pera

Dear PERA Family,

Earlier today, our partner, Wault Finance received a flash loan attack on their new stablecoin, $WUSD, which is backed by a mix of 90% Tether and 10% of Wault’s WEX token.

The attackers used flash loans — a form of uncollateralized blockchain loans that are borrowed and repaid in the same transaction to carry out the arbitrage attack. In this type of attack, the cyberthief takes out a flash loan from a lending protocol and uses it in conjunction with various types of gimmickry to manipulate the market in their favor.

Although some WEX holders have panicked and sold their LP tokens along with their PERA tokens, we wanted to reach out to you personally and assure you that the PERA-WEX pool was not affected at all by this attack, and that the PERA tokens are safe.

Our thoughts are with the Wault community and we wish them a speedy recovery from this unfortunate situation.

We wanted to take this opportunity to thank you for your unwavering support and belief in PERA. Our team is fully dedicated and committed to the long term success of this project.

biswap

Sincerely,

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