Balance Coin Stablecoin Plummets Over 99% Following Exploit
En resumen
- Balance Coin, Balance Protocol's algorithmic stablecoin, dropped over 99% after an exploit.
- Blockchain security firms SlowMist and PeckShield identified the cause as oracle manipulation, leading to $915,000 in losses for 42DAO.
Resumen generado por IA
Por qué importa
Balance Coin, an algorithmic stablecoin of Balance Protocol, aims to maintain a US dollar peg, primarily backed by Bitcoin Cash.
Balance Coin, an algorithmic stablecoin designed to maintain a peg to the US dollar, has fallen more than 99% following a reported exploit.
Balance Coin, the native stablecoin of Balance Protocol, is trading at $0.001358 at the time of writing, down from $0.9954, according to CoinMarketCap.
Blockchain security firm SlowMist said the exploit stemmed from an attacker manipulating an “abnormally low” Binance Bitcoin (BTCB) oracle price, letting the attacker liquidate collateral in multiple BTCB vaults that should not have been liquidatable, then swapping the extracted assets for profit.
“A single-transaction combo exploited the missing price protection and liquidation delay in Maker-style system, allowing an attacker to liquidate multiple BTCB vaults using an abnormally low oracle price and profit from the arbitrage,” SlowMist said.
The incident adds to a string of DeFi exploits this year, with attackers continuing to target smart contract flaws, compromised admin controls and bridge vulnerabilities to siphon funds from onchain protocols.
Blockchain security firm PeckShield said the exploit has caused $915,000 in losses to 42DAO, the governance entity for the Balance Protocol.
Balance Protocol is a DeFi project that offers the USD-pegged Balance Coin, which is primarily backed by Bitcoin Cash, according to its GitBook.
Cointelegraph reached out to 42DAO for comment.
Preguntas abiertas
- Will 42DAO recover the lost funds?
- What specific measures will Balance Protocol implement to prevent future exploits?
- How will this exploit affect Balance Coin's future peg stability?
