Decentralized finance (DeFi) protocol Arcadia Finance has been hit with a nearly $3.5 million attack on the Ethereum Layer-2 network called Base, according to blockchain security firm Certik. The attack occurred on the Ethereum Layer-2 network.
Arcadia Finance Suffers $3.5 Million DeFi Attack on Base Network
Certik first drew attention to the attack in his statement today:
We detected multiple suspicious transactions on Base. The attacker stole approximately $1.6 million from Arcadia Finance. This is believed to have been done through arbitrary use of swapdata via the Rebalancer contract.
A few hours later, Certik announced that the attack was continuing and that the total loss had reached approximately $3.5 million.
The Arcadia team also confirmed the attack and warned users in a post on the official X (formerly Twitter) account:
“Unauthorized transactions were made through Rebalancer. Remove all asset manager permissions.”
On their website, users were advised to “disconnect Rebalancer and Compounder.”
Backed by Coinbase Ventures, Arcadia Finance is a DeFi platform that allows users to borrow and lend, leverage, and swap assets without requiring permission.
Certik, one of the most well-known companies in the industry for Web3 security, stated in a report published last month that crypto users and DeFi protocols lost a total of $302 million in May 2025, a decrease of approximately 17% compared to April.
Certik is backed by major investors such as Sequoia Capital, Tiger Global, and Goldman Sachs, and is expected to reach a valuation of $2 billion by 2024.
*This is not investment advice.