Glossary
Cream Finance Hack (2021)
A series of 2021 exploits that ultimately drained ~130M USD from Cream Finance — including a flash-loan oracle manipulation that became a canonical example of the attack class.
Cream Finance, a fork of Compound on Ethereum and BNB Chain, suffered three major exploits in 2021. The October 27 attack was the largest: an attacker used a flash loan to manipulate Cream's price oracle for yUSD, then borrowed against the artificially inflated value to drain ~130M USD of assets.
The exploit became a textbook example of flash-loan-amplified oracle manipulation. Cream Finance never fully recovered; the protocol was eventually folded into a smaller successor. Subsequent DeFi lending designs paid particular attention to oracle robustness and to listing only assets with deep external markets.