Hedera-Based DeFi Lender Bonzo Lend Loses $9 Million in Oracle Attack

Bonzo Lend, a Hedera-based decentralized finance lending protocol, lost about $9 million in an oracle price manipulation attack.

Cointelegraph reported on July 11 that Bonzo Lend, in a preliminary incident report, said the attacker manipulated the price of collateral assets to borrow far more than their actual value supported.

The report said the hacker posted 250 SAUCE tokens as collateral and inflated the price fed to the on-chain oracle by about 1 trillion times. The attacker then withdrew 6.63 million USDC and 34.5 million wrapped Hedera, or wHBAR, from the lending product, it said.

Bonzo Lend said the incident was caused by a flaw in the oracle service Supra.