The seemingly endless freefall of Terra (LUNA) affected two decentralized finance (DeFi) protocols due to a price discrepancy, as the Chainlink price feed for LUNA gets suspended over extreme market conditions. 

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 “borrow all the collateral.” As a result, Blizz Finance mentioned that its protocol was drained before its team could pause. The team apologized to those who were affected.

In an official statement, Venus Protocol explained 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 lost $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. 

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’ negligence. Twitter user TheSoftwareJedi pointed out that Chainlink’s feeds have the tools necessary to avoid the problem and that it’s the protocols’ fault for not using them.

Related: Untethered: Here’s everything you need to know about TerraUSD, Tether and other stablecoins

Meanwhile, the Terra blockchain was halted as its token…

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