A hacker is using the one-stop DeFi protocol Merkl to create unverified activities to defraud user deposits.

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According to Wu, DeFi player YAM has learned that hackers are using the one-stop DeFi protocol Merkl to create unverified activities to defraud user deposits. Recently, hackers induced users to deposit USDC into the Euler Vault by creating three-digit APR incentives on Sonic, and then drained all deposits. Since Euler is permissionless, hackers were able to deploy a “fake” market, manipulate Oracle Machine prices, and then create an unverified fake activity on Merkl to attract user deposits, subsequently transferring user funds. So far, the scheme has caused over $145,000 in losses. Although both Merkl and Euler clearly label activities/markets as unverified, YAM calls for increasing the difficulty of deposits into such unverified activities and adding more pop-up warnings.

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