Audited decentralized finance project Value DeFi saw the total value locked (TVL) in it crashing by 80% in a single day.

On May 4th, the project had almost $1 billion in TVL, which went from nearly $865 million on Friday to the current $180 million, as per Defi Llama.

The project, which was initially launched on the Ethereum mainnet in August 2020, had recently expanded to Binance Smart Chain (BSC). The project offers features like automated market maker (AMM) and decentralized exchange (DEX) aggregator (vSwap).

According to the BSC project, Value DeFi is handling just over 9k transactions and nearly 3.5k addresses interacting with the project.

There is currently $10.18 million in TVL in the protocol, while less than 24 hours back, $839M was reported.

On Friday, the project announced on Twitter that they are taking additional steps to protect its users and, as a first step, implemented a new 12hr timelock on all critical functions for vFarm.

This improved security update came after earlier in the week. Its vStake profit-sharing pool for vBSWAP was exploited resulted in a loss of $10 million user deposits in that pool due to losing a line of code by “human error.”

“All other pools and funds are SAFU,” it reported in the post mortem of the incident.

At the time, the VALUE team said part of the Reserve Fund would be spent to buy the insurance and further proposed two approaches to help affected users.

All vBSWAP within the Reserve Fund (2802.75 vBSWAP) and 205,659 BUSD from the ValueDeFi deployer will be used to compensate all users at the pool. The remaining 4540 vBSWAP will be minted and either used to compensate all affected users immediately or in two parts.

But it seems like just days after the exploit; something else is going on with the project as its TVL sees such a crash. Trader @depression2019 noted that VALUE seems to be hacked and its pools drained for well over $100 million that could make it the “biggest hack in DeFi history.”

“For those wondering why they can’t withdraw from the WBNB vSafe, your funds are safe; we only disabled deposits and withdraws after noticing one single large withdrawal from one user caused the balance of the vault to be off. There is something wrong with the Alpaca strategy, and we are currently working with Certik and the Alpaca team to resolve the problem. Until then, we will continue working on solutions for all affected users during today’s exploit,” reads the pinned message on the project’s Telegram while the community members berate the project for rug pulling them several times.

This project lost $7 million late last year after they bragged about their “flash loan protection.”

Unlike the last time, the price of the VALUE token fell over 21% this time and is currently trading at $3.86, down 91.7% from its all-time high of $46.90 in Sept. 2020, as per CoinGecko.

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