HomeNEWSSolend protocol attack results to $1.26 million bad debt

Solend protocol attack results to $1.26 million bad debt


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Solend a decentralized lending protocol on the Solana network has witnessed an oracle attack on its platform. A Twitter post from the protocol today discloses that it detects an attack on USDH which affected Stable, Coin98, and Kamino isolated pools. As revealed, the attack cost about a $1.26 million deficit.

Via the post, Solend established that other pools on its protocol, including the main pool, didn’t suffer the attack. Also, the protocol divulged that the affected pools have been shut down. While, it has notified cryptocurrency exchanges about the hack, to track the hacker’s address. As of press time, the protocol hasn’t revealed further details about the attack, while blockchain security firms are yet to react to it.

However, the attack on Solend highlights another month to watch out for in the cryptocurrency space. Lately, the sphere has been greeted with intruding development about hacks. Last Month, DeFi platforms suffered a staggering 44 attacks on 53 protocols. These attacks claimed about $760 million, which is the highest deficit DeFi platforms suffered in a month in 2022. Likewise, the attacks on DeFi platforms last month pushed the total amount of funds stolen by hackers to $2.98 billion in 2022.

How Solend almost suffered a liquidation crisis

In July, recall that the protocol escaped having 95% of Solana (SOL) deposit in it’s lending pool liquidated. The crisis almost emanated after a Whale (a large wallet holder) had an outstanding loan of about $108 million in USDC and USDT. The loan, collateralized in Solana (SOL) almost liquidate due to the dip in the price of the Solana network native token.

Then, the token went as low as $27 risking the disappearance of SOL from Solend’s protocol. Solend could have experienced a crisis if the price of SOL had plunged further. Luckily, a timely intervention by the Whale averted the crisis.

Currently, SOL like many other tokens in the crypto sphere are rebounding, though they are yet to recover fully from the damages of the prevailing bear market. According to Market data from Coincodex, SOL now trades at $31.80.

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David Idowu
David Idowu
David Idowu is a crypto reporter and trader with wealthy years of experience. He believes that blockchain technology has numerous opportunities that are begging for proper utilization. Away from work, David is either reading about World Politics, History or Tech Innovations.

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