Vee Finance
HackedDeFi · ✝ 2021
An oracle that trusted one source, drained in days.
Vee Finance was a lending and trading protocol on Avalanche that launched during the 2021 Avalanche rush. Days after launch, an attacker manipulated its price oracle to drain roughly $34M from the protocol.
- Peak
- ~$34M stolen
- Cause
- Hacked
- Year of death
- 2021
☠️ Cause of death
The protocol relied on a manipulable price feed, letting an attacker open positions at distorted prices and extract collateral.
📓 Lessons left behind
- —Never lend against a single, manipulable price feed.
- —Use TWAP and multi-source oracles for collateral pricing.
- —Launching fast on a hot chain is no excuse for weak oracles.
🌱 The idea that survived
Manipulation-resistant oracles
Reinforced demand for TWAP and aggregated price feeds in lending protocols.
#defi#oracle#flash-loan#avalanche