A 'warden' of the DittoETH platform discovered that an attacker could mint massive amounts of tokens by forcing token prices to diverge from their oracle prices, leading to excessive profits and compromising the protocol's ability to survive.

The vulnerability was discovered by Code4rena warden あああああ and initially not believed by the DittoETH team, until further evidence was presented.

The exploit was related to a faulty mechanism for distributing 'discount fees' to depositors in DittoETH's yDUSD vault, which are newly minted tokens paid out during times of market stress to incentivize liquidity providers.

The vulnerability has been removed through mitigation in a newer test version of DittoETH, meaning it will not be added to the production version.

Code4rena is a crowd-sourced auditing platform where 'wardens' compete to discover vulnerabilities in Web3 protocols in exchange for prize money, without hosting 'bug bounty' style competitions.

Source: https://cointelegraph.com/news/code4rena-discount-fee-exploit-defi

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