{"id":446337,"date":"2022-05-13T11:51:54","date_gmt":"2022-05-13T08:51:54","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/defi-protocols-declare-losses-as-attackers-exploit-luna-price-feed-discrepancy\/"},"modified":"2022-05-13T11:51:54","modified_gmt":"2022-05-13T08:51:54","slug":"defi-protocols-declare-losses-as-attackers-exploit-luna-price-feed-discrepancy","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/defi-protocols-declare-losses-as-attackers-exploit-luna-price-feed-discrepancy\/","title":{"rendered":"# DeFi protocols declare losses as attackers exploit LUNA price feed discrepancy"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2693bf4ce81\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2693bf4ce81\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/defi-protocols-declare-losses-as-attackers-exploit-luna-price-feed-discrepancy\/#%E2%80%9D_DeFi_protocols_declare_losses_as_attackers_exploit_LUNA_price_feed_discrepancy_%E2%80%9C\" >&#8221; DeFi protocols declare losses as attackers exploit LUNA price feed discrepancy &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_DeFi_protocols_declare_losses_as_attackers_exploit_LUNA_price_feed_discrepancy_%E2%80%9C\"><\/span>&#8221; DeFi protocols declare losses as attackers exploit LUNA price feed discrepancy &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvZjU5ZDVmYWMtNjI3Ni00NTBiLThiMWEtYTgxODAyNTcyNzBhLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>The seemingly endless freefall of Terra (LUNA)\u00a0affected two decentralized finance (DeFi) protocols due to a price discrepancy, as the Chainlink price feed for LUNA gets suspended over extreme market conditions.\u00a0<\/p>\n<p>Avalanche-based liquidity protocol Blizz Finance reported that as the price of LUNA was stuck at $0.10, attackers were able to deposit millions of LUNA to \u201cborrow all the collateral.\u201d As a result, Blizz Finance mentioned that its protocol was drained before its team could pause. The team apologized to those who were affected. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">We have built on the AVAX ecosystem in good faith with the expectation that <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/chainlink?ref_src=twsrc%5Etfw\">@chainlink<\/a> oracles would behave as expected. Sorry to those affected.<\/p>\n<p>\u2014 Blizz Finance (@BlizzFinance) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BlizzFinance\/status\/1524912507789377549?ref_src=twsrc%5Etfw\">May 13, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nIn an official statement, Venus Protocol <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/blog.venus.io\/venus-protocol-official-statement-regarding-luna-6eb45c3cb058\">explained<\/a> that when Chainlink paused the LUNA price feed, the LUNA price on their platform remained at $0.107 while the market price was at $0.01. The platform reportedly <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/WuBlockchain\/status\/1524921245308833793\">lost<\/a> $11.2 million because of the price suspension. However, the platform noted that it will utilize its risk fund to bring remedy to this shortfall.\u00a0<\/p>\n<p>While it seems like the cause of the fiasco is the suspension of the Chainlink price feeds, some believe that the losses were due to the protocols\u2019 negligence. <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">Twitter<\/a> user TheSoftwareJedi <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/TheSoftwareJedi\/status\/1524919687414530048\">pointed out<\/a> that Chainlink\u2019s feeds have the tools necessary to avoid the problem and that it\u2019s the protocols\u2019 fault for not using them. <\/p>\n<p><strong><em>Related: <\/em><\/strong><strong><em>Untethered: Here\u2019s everything you need to know about TerraUSD, Tether and other stablecoins<\/em><\/strong><\/p>\n<p>Meanwhile, the Terra blockchain was halted as its token dropped by more than 99%. According to Terraform Labs, the blockchain network was discontinued to prevent governance attacks. However, its team coordinated to restart the network almost immediately. <\/p>\n<p>As LUNA continued to fall, crypto exchange Binance delisted its LUNA\/Tether (USDT)\u00a0pair. Taking precautionary measures, the exchange announced Thursday that it will delist the pair if the LUNA price goes below 0.005 USDT. LUNA has already fallen below that price point and is now trading at $0.000029 at the time of writing, according to coin information site CoinGecko. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/defi-protocols-declare-losses-as-attackers-exploit-luna-price-feed-discrepancy\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; DeFi protocols declare losses as attackers exploit LUNA price feed discrepancy &#8220; The seemingly endless freefall of Terra (LUNA)\u00a0affected two decentralized finance (DeFi) protocols due to a price discrepancy, as the Chainlink price feed for LUNA gets suspended over extreme market conditions.\u00a0 Avalanche-based liquidity protocol Blizz Finance reported that as the price of LUNA&#8230;<\/p>\n","protected":false},"author":1,"featured_media":446338,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDUvZjU5ZDVmYWMtNjI3Ni00NTBiLThiMWEtYTgxODAyNTcyNzBhLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75167,74868,77595,107545,122378],"class_list":["post-446337","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-chainlink","tag-defi","tag-lending","tag-liquidity","tag-terra"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/446337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=446337"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/446337\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/446338"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=446337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=446337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=446337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}