Decentralized Finance Startup Levana Protocol Suffers Security Exploit
A security exploit has hit decentralized finance startup Levana Protocol, resulting in a loss of $1.14 million. According to the project’s statement, the exploit was orchestrated by seven wallets controlled by a single bad actor and began 14 days ago. The attacker initially drained around 4% of Levana’s liquidity providers, which later escalated to an additional 5% before the protocol was closed to new positions.
Attack Not Related to Osmosis or Pyth Oracle Vulnerability
The Levana team emphasized that the attack had nothing to do with Osmosis but rather with core Tendermint and Cosmo SDK issues. They stated that the presumed attacker launched a congestion attack on the Osmosis chain, denying most Levana users the ability to interact with Levana markets and update the Pyth oracle contract. However, Levana assured its users that traders’ positions and profits are safe, and closing positions are uninterrupted.
About Levana Protocol
Levana Protocol is a decentralized perpetual trading protocol established in 2021. It aims to enable leveraged positions for cryptocurrencies.
Hot Take: Levana Protocol Falls Victim to Security Breach Resulting in Significant Losses
In a recent security breach, decentralized finance startup Levana Protocol lost $1.14 million due to an orchestrated attack by a single bad actor. The attacker drained approximately 10% of the project’s liquidity pools over a span of 14 days. Despite the incident, Levana assured its users that their positions and profits remain unaffected. This breach highlights the ongoing security challenges faced by decentralized finance platforms and serves as a reminder for users to exercise caution when participating in such protocols.
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