Oracle Exploit Alert: Bonzo Lend Drained of $9M on Hedera Network
A devastating oracle manipulation attack has resulted in a $9 million loss for the Hedera-based lending protocol, Bonzo Lend. By exploiting a flaw in Supra’s on-chain oracle verifier, an attacker successfully inflated the price of SAUCE collateral, enabling the unauthorized withdrawal of massive liquidity from the protocol's pools.
The breach involved the attacker depositing a negligible amount of SAUCE tokens before artificially boosting their value by 12 orders of magnitude. This exploit allowed for the theft of 6.63 million USDC and 34.5 million wrapped HBAR, underscoring the critical importance of oracle security in preventing catastrophic liquidity drains within the DeFi landscape.
In a preliminary incident report, Bonzo revealed that the attacker deposited just 250 SAUCE tokens—worth only a few dollars—before submitting a price update that inflated the token's value by roughly 12 orders of magnitude. This artificial valuation allowed the wallet to drain 6.63 million USDC and 34.5 million wrapped HBAR from the lending pool. The incident serves as a stark reminder of how oracle failures can turn low-value collateral into a weapon for draining liquidity, even when the underlying network and application appear to be functioning normally.
This is a summarized and adapted version by Artificial Intelligence. To read the complete original story, visit the official source.
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