BetterBank Fee-Logic Exploit

On August 12, 2025, the PulseChain DeFi protocol BetterBank lost approximately $5 million through a flaw in its fee/reward distribution logic that let an attacker repeatedly extract value from the protocol's liquidity pools. Partial recovery followed via negotiation.

What happened

BetterBank's fee/reward accounting could be gamed to credit the attacker disproportionate value per interaction; looping the interaction drained the pools (~$5M). The exact mechanics mirror the reward-accounting double-dip class (Popsicle, Level Finance, Bent).

Aftermath

• Paused; partial negotiated recovery.

Why it matters

BetterBank is notable mostly for its chain — PulseChain — extending the catalogue's geographic coverage and reinforcing its central thesis one more time: every chain, no matter how niche, independently re-learns the same DeFi accounting bugs. PulseChain in 2025, like RSK (Sovryn), NEAR (Skyward), and Stellar (YieldBlox), proves the failure modes are chain-independent and the freely-available defensive knowledge propagates far slower than the builders deploying without it.