‘Precognition Oracle Attacks’
The decentralized finance (defi) platform, Levana Protocol, recently confirmed that it fell victim to an oracle attack, resulting in the loss of approximately $1.14 million from the liquidity pool (LP). However, the Levana team assured users that they have already resolved the issue and will relaunch opening positions next week.
The attack took place 14 days prior to the team’s announcement, with the hackers gradually draining about 4% of the LP over 12 days. However, the attack intensified during Osmosis congestion on December 26, leading to an additional 5% reduction. In the beginning, the Levana team attributed the profit and loss (PNL) fluctuations to organic trader profits and inadequate funding.
According to the latest update, seven wallets allegedly linked to a single malicious entity were identified as perpetrators of the “precognition oracle attacks” during network congestion periods.
Impacted LPs to Receive Airdrop
The Levana team addressed concerns about ongoing LP depletion, stating that existing LPs are not at risk of further exploitation since new positions were paused. Impacted LPs will be compensated through future airdrops and protocol fees collected during the exploit.
In a Medium post, the Levana team clarified that the protocol’s recent issues are unrelated to Osmosis as a chain. Instead, they are believed to stem from the limitations of the Cosmos software development kit (SDK) and Tendermint.
In addition to fixing the vulnerability, Levana will provide an airdrop to affected LPs and distribute a portion of the fees collected during the attack window.
Hot Take: Levana Protocol Falls Victim to Oracle Attack, Losing $1.14 Million
The Levana Protocol experienced a setback when it was targeted by oracle attacks, resulting in a loss of approximately $1.14 million from its liquidity pool. The attack occurred over a period of 12 days, with additional damage inflicted during Osmosis congestion.
The Levana team has since resolved the issue, assuring users that opening positions will recommence in the following week. However, concerns remain regarding future attacks on the LPs, prompting the team to offer compensation through airdrops and protocol fees for affected LPs. Furthermore, Levana plans to address the vulnerability and enhance its platform.
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