DeFi platform Terraport Finance suffered a significant blow, as reports suggest that it has been exploited, resulting in a loss of approximately $4 million.

According to Singaporean cybersecurity firm Numen Cyber, the project’s liquidity has been drained, including tokens such as $LUNC, $USTC, and $TERRA.

While the exact details of the hack remain unclear, this is yet another reminder of the inherent risks associated with DeFi platforms.

Unlike traditional financial systems, which are heavily regulated and have security measures in place, DeFi platforms are decentralized and open, making them more vulnerable to attacks.

DeFi platforms operate through smart contracts, which are self-executing computer programs that automatically execute the terms of an agreement when certain conditions are met.

While smart contracts are designed to be tamper-proof and secure, they are not infallible, and vulnerabilities can be exploited by hackers.

This is a developing story and more details are expected.