Warp Finance
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anchored·5VjAge…KNCYSummary
Warp Finance was an Ethereum-based DeFi lending protocol that allowed users to borrow stablecoins against Uniswap liquidity provider (LP) tokens as collateral. On December 17–18, 2020, roughly one week after launch, an attacker exploited a manipulable AMM-based price oracle to artificially inflate LP token collateral values using flash loans, draining approximately $7.76 million in DAI and USDC. Approximately $5.85 million (roughly 75%) was subsequently recovered from the attacker's locked collateral with assistance from the white-hat community; the protocol relaunched in February 2021 with Chainlink price feeds replacing the vulnerable Uniswap oracle.
Connected Entities
5 entities · 60 linked investigations- Harvest Finance→mentioned with→Ethereum(65%)
- Harvest Finance→mentioned with→Uniswap(60%)
- Uniswap→mentioned with→Ethereum(80%)
- Chainlink→mentioned with→Ethereum(65%)
- Warp Finance→mentioned with→Harvest Finance(80%)
- Warp Finance→mentioned with→Ethereum(80%)
- Warp Finance→mentioned with→Chainlink(70%)
- Warp Finance→mentioned with→Uniswap(70%)
Timeline(9 events)
9 December 2020
Warp Finance protocol launches on Ethereum mainnet, offering stablecoin loans collateralized by Uniswap LP tokens. No pre-launch security audit had been completed.
CoinDesk / Warp Finance Medium17 December 2020
At approximately 02:30 UTC, an unidentified attacker executes a multi-step flash loan attack. The attacker borrows ~2.9M DAI and ~344,800 WETH via flash loans from dYdX and Uniswap V2, deposits DAI to mint ~94,349 LP tokens as collateral, manipulates the Uniswap WETH-DAI pool reserve ratio to approximately double the reported LP token value, and borrows 3.86M DAI and 3.9M USDC (~$7.76M total) against the inflated collateral.
PeckShield Root Cause Analysis18 December 2020
Warp Finance team publicly acknowledges the exploit via Twitter, stating it is 'investigating irregular stablecoin loans.' CoinDesk and other outlets report the incident. Protocol deposits are suspended.
CoinDesk18 December 2020
PeckShield and SlowMist publish independent root cause analyses identifying the Uniswap AMM-based LP token oracle as the exploited vulnerability.
PeckShield Medium / SlowMist Medium20 December 2020
At 02:16 UTC, Warp Finance announces recovery of the exploiter's locked ETH/DAI-LP token collateral (~$5.688M, approximately 73–75% of lost funds) with assistance from white-hat researchers including Emiliano, Banteg, Samczsun, and Julien Bouteloup. Distribution to affected users is planned within 24 hours.
Warp Finance Medium / Decrypt22 December 2020
Recovered ETH/DAI-LP tokens (~$5.688M) distributed proportionally to affected depositors. The remaining ~$2M in stablecoins held by the attacker is not recovered.
Quadriga Initiative Case StudyJanuary 2021
Warp Finance announces the Portal IOU token compensation plan: 7,816,976 Portal IOU tokens issued to affected users, redeemable for WARP governance tokens at the planned token generation event, representing approximately 7.5% of total WARP supply.
Warp Finance Medium (Portal IOU clarification post)January 2021
Warp Finance announces integration of Chainlink price feeds (DAI/ETH, BTC/ETH, USDT/ETH, USDC/ETH) to replace the vulnerable Uniswap AMM oracle for the forthcoming relaunch.
Warp Finance Medium (Chainlink integration announcement)9 February 2021
Warp Finance relaunches as Warp V2 following a security audit by n-Var, with Chainlink oracle integration and revised LP token valuation logic. A bug bounty program is subsequently established via Immunefi.
Bitcoinist / BeInCryptoDecision Log
- slot 423161265 · hash 2fv4427PaPQQFveffgpmarmvUvdhJYm5RZn8tPuBrGQy
This investigation is cryptographically anchored to the Solana blockchain (1 decision). 16 of 18 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-5
generated: 5/30/2026, 1:00:24 PM
last updated: 8/29/2026, 1:33:04 AM
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