BlockSec Thwarts 15% Contract Call Hack on Usual Protocol

BlockSec, a prominent security provider firm, reported an attempted hack on Usual Protocol on May 28. The company's monitoring system, Phalcon, identified unusual contract calls in real time and flagged the exploit before any damage occurred. The attacker targeted Usual’s decentralized fiat-backed stablecoin infrastructure across multiple chains. The security team released visual data illustrating the flow of suspicious operations in the attempted hack, highlighting the growing sophistication of attacks against decentralized finance platforms.

BlockSec’s analysis revealed that the suspect wallet address had at least fifteen contract calls, spanning core functions within the protocol’s decentralized smart contracts. The attacker queried liquidity pools to gather information on token reserves and manipulated token approvals to gain unauthorized contract permissions quickly. Subsequent operations attempted to execute token functions at multiple system points, indicating a multi-stage approach targeting critical system processes. This pattern suggests an effort to extract value from the protocol’s resources, emphasizing the need for continuous vigilance against future threats.

A suspected flash loan exploit formed a central part of this hacking strategy. Flash loans enable rapid borrowing of large funds without any collateral requirement, often used by attackers to manipulate asset prices in protocols. In this case, contract calls implied attempts to leverage borrowed tokens instantly. Additional traces indicated efforts to modify approval settings on multiple tokens, and liquidity pool interactions showed signs of intentional protocol behavior changes. These tactics can create vulnerabilities that expose decentralized platforms to risk.

BlockSec’s Phalcon system flagged multiple high-risk operations during this event. Suspicious function calls matched patterns seen in previous protocol breaches, and the system’s real-time response prevented any funds from leaving the network. Rapid detection and action stopped the attack before asset displacement occurred, marking another successful case for the security provider’s defenses. The outcome reinforces the importance of continuous monitoring in decentralized systems, with operators noting zero loss due to swift countermeasures and system automation.

BlockSec developed Phalcon, a specialized monitoring tool to address protocol vulnerabilities. Phalcon oversees on-chain transactions and contract interactions continuously, analyzing operational and financial activities to spot threats in real time. The security service provider has detected over twenty attacks so far, preserving millions of dollars in assets through proactive interventions globally. BlockSec’s solutions integrate automated alerts with manual risk assessments, with the Usual Protocol hack attempt reinforcing the tool’s real-world effectiveness.

This incident illustrates the broader challenges facing modern decentralized finance networks. As protocols grow more complex, potential security gaps naturally increase over time. Attackers frequently probe for weak contract configurations or flawed liquidity settings. Even permissionless systems cannot fully guard against novel exploit strategies alone. The Usual Protocol hack attempt serves as a reminder for developers to reinforce their safeguards, with effective monitoring remaining vital to detect issues before substantial losses can occur. Continuous security assessments help maintain resilience against evolving hacker techniques, and industry collaboration and shared intelligence amplify defensive capabilities across platforms.

Blockchain ecosystems like Usual rely on decentralized structures for governance and ownership. However, a distributed architecture alone does not fully protect against exploit tactics. Security frameworks provide technical safeguards to detect and block attacks. Protocol developers should integrate monitoring systems early in the design stage, with regular audits and threat modeling enhancing protocol resilience against emerging vulnerabilities. As blockchain adoption rises, attack strategies will continue to evolve rapidly. Tools such as Phalcon remain vital for maintaining ecosystem integrity, and stakeholders must remain vigilant and invest in security to preserve user trust.