Blizz Finance
HackedDeFi · ✝ 2022
A frozen Chainlink feed let bad debt drain ~$21.8M.
Blizz Finance was an Avalanche lending protocol forked from Aave that lost roughly $21.8M in 2022. When the LUNA price collapsed, its Chainlink oracle hit a frozen minimum price floor, letting an attacker borrow against near-worthless collateral.
- Peak
- ~$21.8M stolen
- Cause
- Hacked
- Year of death
- 2022
☠️ Cause of death
An outdated oracle reported a stale floor price for LUNA, so the protocol valued collapsing collateral far above market and was drained.
📓 Lessons left behind
- —Oracles with price floors lie when assets crash through them.
- —Lending forks must handle stale and frozen feeds.
- —Pause borrowing when an oracle stops tracking the market.
🌱 The idea that survived
Staleness-aware oracles
Stressed circuit breakers and staleness checks so lending protocols halt when feeds detach from reality.
#defi#oracle#avalanche