Term Finance recovers $1M after oracle bug triggers $1.6M liquidation loss
The post Term Finance recovers $1M after oracle bug triggers $1.6M liquidation loss appeared on BitcoinEthereumNews.com. The Ethereum-based lending platform Term Finance said it had recovered nearly one million dollars after a misconfigured price oracle caused erroneous liquidations in its Treehouse (tETH) market. The issue began when a new ETH oracle provided incorrect price data to the system. This caused automatic liquidations, approximately $1.6 million worth of positions. Term Finance clarified in a post on X that the incident was not a hack, no smart contracts were involved, and no users were attacked, explaining that a technical bug in the configuration of the new oracle caused the issue. The episode again shows how vital oracle feeds are to the DeFi ecosystem. Even tiny things can be catastrophic when it comes to smart contracts. Term finance recovers half of lost funds Term Finance immediately pressed to recover the missing assets. Of the 918 ETH lost in total, they recovered 556 ETH. In particular, 223.197 ETH, valued at around $400,000, was seized by the platform internally. Another 333 ETH, worth roughly $600,000, was returned after what Term called “negotiations.” It also remains unknown who was included in the negotiation or on what terms the pact was made. The company has not yet disclosed additional information regarding the method. With the recovery attempts, the remaining loss is now 362.03 ETH — approximately $650,000 at today’s market rates. That’s much less damaging than the one before, and it takes some pressure off Term Finance and its community. The website did not acknowledge this until media coverage surfaced, and the company has since declared that it will conduct a thorough review of its Oracle integration process to avoid such problems in the future. It also suggested that users affected by the bad liquidations might be eligible for further compensation, though no formal decision had been made. Weekend crypto attacks spark industry…
The post Term Finance recovers $1M after oracle bug triggers $1.6M liquidation loss appeared on BitcoinEthereumNews.com.
The Ethereum-based lending platform Term Finance said it had recovered nearly one million dollars after a misconfigured price oracle caused erroneous liquidations in its Treehouse (tETH) market. The issue began when a new ETH oracle provided incorrect price data to the system. This caused automatic liquidations, approximately $1.6 million worth of positions. Term Finance clarified in a post on X that the incident was not a hack, no smart contracts were involved, and no users were attacked, explaining that a technical bug in the configuration of the new oracle caused the issue. The episode again shows how vital oracle feeds are to the DeFi ecosystem. Even tiny things can be catastrophic when it comes to smart contracts. Term finance recovers half of lost funds Term Finance immediately pressed to recover the missing assets. Of the 918 ETH lost in total, they recovered 556 ETH. In particular, 223.197 ETH, valued at around $400,000, was seized by the platform internally. Another 333 ETH, worth roughly $600,000, was returned after what Term called “negotiations.” It also remains unknown who was included in the negotiation or on what terms the pact was made. The company has not yet disclosed additional information regarding the method. With the recovery attempts, the remaining loss is now 362.03 ETH — approximately $650,000 at today’s market rates. That’s much less damaging than the one before, and it takes some pressure off Term Finance and its community. The website did not acknowledge this until media coverage surfaced, and the company has since declared that it will conduct a thorough review of its Oracle integration process to avoid such problems in the future. It also suggested that users affected by the bad liquidations might be eligible for further compensation, though no formal decision had been made. Weekend crypto attacks spark industry…
What's Your Reaction?
