A decentralized exchange (DEX) built on Osmosis (OSMO) was hacked this week with $1.14 million worth of cryptocurrency.
Levana Protocol (LVN) focuses on perpetual swaps. presentation On Wednesday, it announced that it had suffered an oracle attack affecting 10% of its liquidity pools (LPs).
Levana said the issue has been resolved and hiring will resume next week. The project stated that existing liquidity pools are not at risk of further attacks and that affected LPs will be compensated through future airdrops and protocol fees collected during the hack.
The decentralized exchange recorded that the attack began on December 13.
“The alleged attacker was able to launch a congestion attack on the Osmosis chain, denying most Levana users the ability to interact with the Levana market for a predictable period of time and thus update the Pyth oracle contract. A bug in the Osmosis fee market code means that the gas prices provided during periods of congestion are generally insufficient to place trades or perform ongoing bot maintenance activities. This, combined with the sluggish pricing of Levana and Pyth’s interaction, gives us the ability to perform an oracle attack and consume about 10% of the Levana pool over a 13-day period.”
Levana began issuing its own token, LVN, a month ago. LVN is trading at $0.183 at the time of writing and is down more than 34% over the past seven days.
Osmosis is an automated market maker (AMM) protocol built on the Cosmos (ATOM) software development kit (SDK). The goal is to enable cross-chain transactions by utilizing inter-blockchain communication (IBC).
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