Decentralized Finance Platform Levana Protocol Reports $1.14 Million Loss in Recent ‘Oracle Attack’

Decentralized Finance Platform Levana Protocol Reports $1.14 Million Loss in Recent 'Oracle Attack'

Decentralized Finance Platform Levana Protocol Reports $1.14 Million Loss in Recent ‘Oracle Attack’

Levana Protocol, a decentralized finance (defi) platform, recently confirmed falling victim to an oracle attack, resulting in the drainage of approximately 10% or $1.14 million from its liquidity pool (LP). In an update posted on Dec. 27, the Levana team reassured users that the issue has been addressed, and the resumption of opening positions is scheduled for the following week.

Decentralized Finance Platform Levana Protocol Reports $1.14 Million Loss in Recent 'Oracle Attack'

The attack unfolded over a 14-day period, with hackers siphoning off around 4% from the LP. However, the assault intensified during Osmosis congestion on Dec. 26, causing an additional 5% loss. Initially, the Levana team attributed the changes in profit and loss (PNL) to “organic trader profits and lack of effective cash.” Currently, seven wallets linked to a potential bad actor are identified as having executed “precognition oracle attacks” during network congestion.

Addressing concerns about potential further LP drains, the Levana team assured that existing LPs are not vulnerable to additional exploits since new position openings were halted. Compensation for affected LPs will be provided through future airdrops and protocol fees accumulated at the time of the exploit.

In a Medium post, the Levana team clarified that the recent issues were unrelated to Osmosis as a chain itself. Instead, the challenges appear to be rooted in the limitations of the Cosmos software development kit (SDK) and Tendermint. Alongside resolving the vulnerability, Levana plans to conduct an airdrop for impacted LPs and distribute a portion of the fees collected during the attack window to those affected.

Source: news.bitcoin.com

Also Read, Immunefi Reports $1.8 Billion in Losses for Crypto Users Due to Hacks and Scams in 2023

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