Update July 22 4:37 UTC: The article has been updated to include additional information from Slowmist about the exploit method.

Balance Coin, an algorithmic stablecoin designed to maintain a peg to the US dollar, has lost over 99% following a reported exploit.

The stablecoin, Balance Protocol’s native algorithmic coin, is currently trading at $0.001358, down from $0.9954, According to to CoinMarketCap.

Blockchain security firm SlowMist said the exploit resulted from an attacker manipulating the “abnormally low” price of Binance Bitcoin (BTCB), allowing the attacker to liquidate multiple BTCB vaults that should not have been liquidated and then swap the mined assets for a profit.

“The single trade combo exploited missing price protection and liquidation delay in a Maker-type system, allowing an attacker to liquidate multiple BTCB vaults using the abnormally low Oracle price and profit from arbitrage” – SlowMist he said.

The incident adds to a string of DeFi exploits this year, with attackers targeting sharp contract flaws, compromised administrative controls and bridge vulnerabilities to siphon funds from onchain protocols.

Related: Artificial Intelligence Didn’t Cause DeFi’s ‘Hackpocalypse’, Says Dragonfly Partner

Blockchain security company PeckShield he said the exploit resulted in $915,000 in losses for 42DAO.

42DAO is the governing entity of Balance Protocol, a DeFi protocol offering a USD-pegged stablecoin, Balance Coin, primarily backed by Bitcoin Cash, According to to your Gitbook.

Cointelegraph asked 42DAO for comment.

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