Another DeFi Exploit: Perp DEX Ostium Loses $18 Million in Oracle Attack
Another DeFi Exploit: Perp DEX Ostium Loses $18 Million in Oracle Attack
Decentralized exchange Ostium was recently breached in a smart contract exploit, leading to an $18 million loss. The attack exploited the platform’s price oracle, which is crucial in determining asset prices on Ostium.
The attacker manipulated the price oracle to revert the minimum rate limit set for the validator's prices. At one point, the resulting oracle price deviated by 129 times the original figure. This manipulation involved depositing 67 GLP tokens into Ostium smart contracts and receiving 2.5 million USDC in return. This glitch led the hacker to make an undue profit from the incorrect exchange rate. Consequently, the validator that assisted the attacker was blacklisted by Ostium.
Ostium has an insurance fund and plans to initiate a compensation scheme. "We are actively investigating the issue and will unveil a compensation plan within 48 hours," Ostium posted on social media. "We extend our gratitude to partners who assisted in safeguarding funds and reaching resolutions for our community."
This incident is the latest in a series of DeFi protocol breaches. Including Ostium’s losses, over $1.2 billion has been drained from such protocols this year, as per various security firm reports.
This article has been published in decrypt.co via Yahoo News.
Another DeFi Exploit: Perp DEX Ostium Loses $18 Million in Oracle Attack
Hackers manipulated Ostium's price feed by compromising an oracle signer key, allowing them to drain roughly $18 million from the Arbitrum-based perpetuals exchange.
finance.yahoo.com
