Defi Platform Levana Protocol Says $1.14 Million Was Lost During an ‘Oracle Attack’

The decentralized finance platform Levana Protocol confirmed on Dec. 27 that unknown attackers had drained roughly $1.14 million from the liquidity pool. The Levana crew nevertheless insisted that the problem has “been fixed and opening positions will relaunch next week.”

‘Precognition Oracle Attacks’

The decentralized finance (defi) platform, Levana Protocol, not too long ago confirmed that it was a sufferer of an oracle assault, by which roughly 10% or $1.14 million was drained from the liquidity pool (LP). However, in an update shared through X on Dec. 27, the Levana crew insisted that the problem has already “been fixed and opening positions will relaunch next week.”

According to the replace, the assault occurred 14 days earlier, and over 12 days, the hackers have been in a position to drain roughly 4% off the LP. However, the assault elevated considerably throughout Osmosis congestion on Dec. 26, leading to a further 5% drain. Initially, the Levana crew attributed the ensuing change within the revenue and loss (PNL) to “organic trader profits and lack of effective cash.”

There have been 7 wallets recognized as performing precognition oracle assaults on Levana throughout occasions of community congestion, it’s assumed these are from one unhealthy actor.

Read the report right here: https://t.co/hqVZU8CpWS

Read under for extra particulars:

— Levana Protocol (@Levana_protocol) December 27, 2023

At the time of writing, seven wallets, that are presumed to belong to a nasty actor, have been stated to have carried out “precognition oracle attacks” on the protocol throughout occasions of community congestion.

Impacted LPs to Receive Airdrop

Commenting on fears that hackers will proceed to empty the LPs, the Levana crew stated:

“Existing LPs are not at risk of further exploit since opening new positions was paused yesterday morning. Impacted LPs will be compensated through future airdrops and protocol fees collected at the time of the exploit.”

Meanwhile, in a Medium post, the Levana crew insisted that the protocol’s latest points had “nothing to do with Osmosis as a chain itself.” Rather, the problems appear to stem from the restrictions of the Cosmos software program growth package (SDK) and Tendermint.

The crew additionally revealed that, along with fixing the vulnerability, Levana will grant an airdrop to LPs impacted by the exploit. Furthermore, the affected LPs will obtain a share of the charges collected through the assault window.

What are your ideas on this story? Let us know what you assume within the feedback part under.