Arcadia Finance $2.5M Base Hack via Rebalancer Flaw
On July 15, Arcadia Finance suffered a $2.5M hack on the Base blockchain after attackers exploited a flaw in its Rebalancer contract. They drained about 2.3M USDC and 227K USDS from user vaults, then swapped the funds into 199 WETH and 965.8M AERO before bridging to Ethereum. Blockchain security firm Cyvers detected the breach within minutes and urged exchanges and bridges to blacklist suspicious addresses. Arcadia Finance confirmed the breach, revoked Rebalancer permissions, and advised users to cancel related allowances. The Arcadia Finance hack underscores persistent DeFi vulnerabilities. In H1 2025, hacks and fraud cost DeFi platforms $2.47B, highlighting the need for rigorous smart contract audits and permission management.
Bearish
The Arcadia Finance hack exposes a critical vulnerability in a Base blockchain DeFi protocol, which can undermine investor confidence. In the short term, traders may reduce exposure to affected tokens such as AERO and related DeFi assets, triggering selling pressure. Although Arcadia’s swift response may mitigate long-term damage, recurring exploits in Layer-2 networks could weigh on market sentiment, making the overall impact bearish for Base ecosystem tokens.