EGD Finance's reward calculation directly relied on token price without flash loan protection. Attackers used a flashloan to manipulate the USDT/EGD ratio in the PancakeSwap pool, artificially inflating EGD price and claiming excessive rewards.

According to SlowMist, the EGD Finance project on BSC was attacked by hackers, resulting in the unexpected withdrawal of funds from its pool. The SlowMist security team analyzed this and said that this incident was because the price-feeding mechanism for calculating rewards when EGD Finance's contracts obtained rewards was too simple, resulting in the token price being manipulated by flash loans for profit.