Balance Coin Stablecoin Falls 99% After Oracle Manipulation
Balance Coin, an algorithmic stablecoin, plunged over 99% after an exploit on July 22. The attacker manipulated aBinanceBitcoinoracle price to liquidate multiple BTCB vaults. Blockchain security firm SlowMist. . .
Balance Coin, an algorithmic stablecoin, plunged over 99% after an exploit on July 22. The attacker manipulated aBinanceBitcoinoracle price to liquidate multiple BTCB vaults. Blockchain security firm SlowMist identified the exploit as a single-transaction combo missing price protection. PeckShield reported $915,000 in losses to 42DAO, the protocol’s governance entity. The algorithmic stablecoinBalance Coinhas fallen more than 99% following a reported exploit, as detailed in an update on July 22. The token, native to theBalance Protocol, dropped from $0. 9954 to $0. 001358, according toCoinMarketCap. - Advertisement -Blockchain security firmSlowMistattributed the exploit to an attacker manipulating an “abnormally low” Binance Bitcoin (BTCB) oracle price. This allowed the attacker to liquidate collateral in multiple BTCB vaults that should not have been liquidatable, then swap the extracted assets for profit. “A single-transaction combo exploited the missing price protection and liquidation delay in Maker-style system, allowing an attacker to liquidate multiple BTCB vaults using an abnormally low oracle price and profit from the arbitrage,”SlowMistsaid. Consequently,PeckShieldreported that the exploit caused $915,000 in losses to42DAO, the governance entity for the Balance Protocol. The protocol offers a USD-pegged stablecoin primarily backed byBitcoin Cash, according to its documentation. The incident adds to a string ofDeFiexploits this year, with attackers continuing to target smart contract flaws, compromised admin controls and bridge vulnerabilities to siphon funds from onchain protocols. - Advertisement -✅ FollowBITNEWSBOTonTelegram,Facebook,LinkedIn,X. com, andGoogle Newsfor instant updates. Previous Articles:CFTC short-staffed for prediction market oversight, hearing toldApple fixes Hide My Email flaw that leaked real addresses for over a yearWhite House pushes Dems to accept Trump’s crypto ethics dealTelegram to roll out native Gram wallet for 1B usersAugustus raises $180M for Global Dollar Bank at $1B valuationStay in the Loop🔥Join 1. 2K Smart TradersGet exclusive crypto insights, breaking news, and market analysis delivered straight to your inbox. No fluff, just facts.