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    Attackers exploitation LUNA price data mismatch results in losses for DeFi protocols

    Owing to price mismatches, Terra’s (LUNA) seemingly continuous freefall has damaged two decentralised finance (DeFi) protocols, as Chainlink’s (LINK) price feed for LUNA has been terminated due to severe market circumstances.

    Liquidity procedure based on avalanche According to Blizz Finance, the attackers were able to deposit millions of LUNA to “borrow all the collateral” since the price of LUNA was frozen at $0.10. As a result, Blizz Finance stated that his procedure had been exhausted before his team could take a break. The team expressed regret to the victims.

    According to the official statement from Venus Protocol, when Chainlink terminated LUNA price feeds, the price of LUNA on their platform stayed at $0.107 while the market price was at $0.01. The platform reportedly lost $11.2 million as a result of the pricing freeze. However, the platform stated that it will utilise its risk fund to make up the difference. While the stoppage of Chainlink’s pricing flows appears to be the source of the disaster, some feel that the losses were caused by faulty processes. TheSoftwareJedi, a Twitter user, pointed out that Chainlink channels have the facilities needed to mitigate this problem and that the protocols are to fault for not employing them.

    Meanwhile, the Terra blockchain was placed on hold after its token fell by more than 99 percent. Terraform Labs reports that the blockchain network has been shut down to avoid governance assaults. His staff, on the other hand, arranged the network’s reactivation nearly instantly.

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