DeFi protocol Abracadabra Finance has reportedly suffered a significant security attack. Security analysts estimate that the protocol appears to have been drained of over $6.4 million.

Security firms PeckShield and Blocksec said the incident was a malicious attack.

Blocksec told The Block the initial analysis suggested an attack on the project’s smart contract, though further analysis is needed. The firm estimates nearly $29 million in assets remain in the affected contract at the time of writing.

“It’s an attack due to reentrancy. However, some assets are still at risk, and the project and users should take immediate action,” said Blocksec.

Abracadabra Finance, known for its DeFi lending and borrowing tools, allows users to deposit various cryptocurrencies as collateral to borrow a …