$100 Million Liquidated on Defi Protocol Compound Following Oracle Exploit
Lenders on decentralized finance (defi) protocol Compound on Thursday got liquidated for a massive $103 million, according to analytics provider Loanscan. This happened after what appears to be an oracle exploit on the Dai stablecoin. An apparent error or malicious attack to the Dai-dollar-peg data supplied by the Coinbase oracle pushed the price of the stablecoin to about $1.30 – a premium of 30% – leaving some users on Compound under-collateralized. Compound gets its pricing data from Coinbase Pro. Now, once this happened, and based on the built-in protocol rules, this could....
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The DeFi space crashed along with the rest of the market on May 19, but the liquidations mechanisms passed the biggest stress test. The savage sell-off that took place in mid-May fueled volatility in markets and triggered liquidations among numerous decentralized finance protocols. Like an earthquake, the market fall exacerbated the biggest wave of liquidations in DeFi history. The market experienced a higher amount of liquidation on May 19 than in the past two years in the DeFi space. As part of the Market Insights bi-weekly newsletter, Cointelegraph Consulting teamed up with Covalent to....
The Feb. 22 crypto market flash-crash liquidated more than $24 million worth of DeFi loans. with Compound users representing more than half of the margin calls. The Feb. 22 crypto crash has sparked the second-largest volume of DeFi liquidations in the sector’s history, with more than $24.1 million worth of loans being forcefully closed within 24 hours.According to crypto data aggregator DeBank, $13.7 million, or nearly 60% of the losses occurred on Compound, followed by Aave with $5.4 million worth of liquidations.Yesterday’s liquidations were the second-largest to hit DeFi, trailing....
Another decentralized finance (DeFi) protocol has fallen prey to an exploit. The Harmony protocol had been gaining popularity among DeFi users over the last year as the DeFi space bloomed. But it has now suffered the same fate as many protocols in the space. On Friday, the protocol announced that it has been the victim […]
The last week of October turned bearish for the DeFi market despite the string of hacks, as the majority of the DeFi protocols registered bullish weekly gains. Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.After the Mango Markets exploit last week, Compound protocol paused the supply of four tokens as lending collateral to protect it against any price manipulation.Crypto staking protocol Freeway said one of its trading strategies “appears to have failed,”....
Deus Finance had acknowledged the exploit on its lending contract and the CEO of the firm was quick to come up with a reimbursement plan. Multi-token decentralized finance (DeFi) marketplace Deus Finance has become the latest victim of an exploit resulting in over $3 million losses in DAI and Ether (ETH).DeFi analytic firm PeckShield took to Twitter to explain the cause and manner in which the funds were exploited. The hackers behind the attack managed to exploit and manipulate price oracle for flash loans, resulting in the insolvency of users’ funds. 1/ @deusdao Deus Finance was exploited....