Blockchain security agency PeckShield reports Solana-powered Solend lending protocol hit exploit and $1.26 million loss
Solend Platform
acknowledged exploit and claimed that the attack targeted pools of Hubble stablecoins, Coin98 and Kamino tokens:
“An oracle attack on USDH has been discovered affecting isolated pools of Stable, Coin98 and Kamino, leaving the project with a bad debt of 1.26 million.”
The Solend team assured that immediately after the incident, the affected pools were blocked. All other credit pools remain available to users. The developers of the protocol explained that the attacker took advantage of a vulnerability in the project’s price oracle, a system for tracking prices for various crypto assets.
A price oracle attack is a well-established hacking practice for lending protocols where attackers can overprice certain cryptocurrencies and borrow other assets with the intent of never paying back the borrowed amount. This results in bad debt that is unlikely to ever be repaid.
The Solend platform uses a decentralized lending system that allows users to borrow and earn interest on crypto assets using credit pools.
Last month, the Solana lending and trading platform team Mango Market reported a price oracle hack that resulted in the theft of $114 million in assets. $10 million to create ANA tokens for the same amount. In April, cybersecurity experts reported that Deus Finance was hacked by a hacker who used a script already used to illegally withdraw assets from this site.
Source: Bits
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