Inverse Finance Frontier
HackedDeFi · $INV · ✝ 2022
A manipulated TWAP let attackers over-borrow ~$15.6M.
Inverse Finance's Frontier money market was hit in April 2022 by a price-oracle attack costing roughly $15.6M. The attacker manipulated the price of INV via low-liquidity pools to borrow far more than their collateral was worth.
- Peak
- ~$15.6M stolen
- Cause
- Hacked
- Year of death
- 2022
☠️ Cause of death
A manipulable TWAP oracle on a thin liquidity pool let the attacker inflate INV's price and borrow against vastly overvalued collateral.
📓 Lessons left behind
- —TWAPs on thin liquidity are still cheap to manipulate.
- —Oracle robustness depends on the depth behind the price.
- —Use multiple independent sources for collateral pricing.
🌱 The idea that survived
Liquidity-aware pricing
Showed that oracle safety requires deep, multi-source liquidity, not just a time-weighted average.
#defi#oracle#twap