Polter Finance partners with FailSafe after $8.7m hack

Polter Finance has partnered with blockchain security provider FailSafe to enhance its security system to prevent future exploits.

According to a press release sent to crypto.news, Polter Finance’s collaboration with FailSafe will ensure the implementation of real-time threat detection and runtime security on top of the platform’s existing security measures.

FailSafe’s runtime security solution is designed to detect and neutralize threats before they have the opportunity to escalate even further, addressing common attack vectors in the DeFi ecosystems.

Following the partnership, Polter also plans to re-launch itself on Sonic and Base (BASE) blockchains.

In November 2024, Polter Finance lost at least $8.7 million in a price oracle manipulation attack, where an exploiter used flash loans to artificially inflate token prices, allowing them to drain millions in unauthorized loans.

To prevent such an attack from occurring again, the Singapore-based lending protocol will employ FailSafe’s security solution which is equipped to identify and mitigate price distortions and liquidity manipulations.

In addition, FailSafe is able to detect malicious contract calls and suspicious wallet activity as well as activate an automatic threat response that pauses smart contracts and freezes suspicious transactions.

Polter Finance’s founder, WhichGhost views the November 2024 attack as a “wake-up call” that made the firm realize they had to take more advanced measures that went beyond traditional audits.

“FailSafe’s platform gives us the tools to detect, prevent, and respond to threats instantly—protecting our users and reinforcing our protocol’s resilience,” said WhichGhost in a statement.

On the other hand, CEO of FailSafe, Aneirin Flynn, said the attack on Polter was just one of the most recent examples that shows just how important runtime security is.

“DeFi security must evolve. Hackers don’t wait—why should security?” said Flynn.

In Novermber 2024, shortly after the exploit, Polter announced that it was collaborating with whitehat hacker group the Security Alliance, to combat cybersecurity threats. The previous update also said the platform was committed to recovering the $12 million lost in the flash loan attack.