Wault WUSD Minting Attack Root Cause Analysis

The Exploit

How?

  1. Borrow 16.8M WUSD of flash loan and redeemed into 15M USDT and 106M WEX.
  2. Borrowed 40M USDT of flash loan.
  3. Swapped 518M WEX with USDT. (At a rather cheap price.)
  4. Minted 250K WUSD with 250K USDT. Repeated many times. Passivity bought $25K WEX each time, pushing the price higher.
  5. Dumped 624M WEX (from step 1 and step 3) at a higher avg price.
  6. Dumped WUSD through WUSD/BUSD LP. Repaid the flash loans.

Why?

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