Saturday, May 21, 2022
Home Crypto News Market Blizz Finance Depleted After LUNA Feeds Pause, Fingers Pointed At Chainlink

Blizz Finance Depleted After LUNA Feeds Pause, Fingers Pointed At Chainlink

- Advertisement -
Follow-Us-On-Google-News

 

Blizz Finance Depleted After LUNA Feeds Pause, Fingers Pointed At Chainlink.


 

LUNA is yet again in the headlines as a loss-causing coin. This time around, the incident occurred on Chainlink, a blockchain that facilitates hybrid smart contracts to power decentralized applications. When LUNA’s price fell and reached the minimum value allowed for the LUNA/USD on Chainlink, Chainlink paused the price updates for LUNA.

blizz finance hacked

Image source: Wu Blockchain

How Hackers Drained Funds

The pausing of price updates for LUNA meant that the entities operating on the network were left unaware of what was happening to the LUNA price. This allowed attackers to deposit millions of LUNA at the previous higher price of $0.10 as assigned by the Chainlink Oracle that wasn’t updated at the time. They then went on to borrow the value of their entire collateral.

Chainlink To Blame?

Fingers are now pointing at Chainlink for what some believe was a laxity that allowed bad actors to deposit low-value LUNA and still borrow their entire collateral that should have been much lower in value given the downward change in LUNA’s price at the time. Blizz Finance is one of the many entities that lost money during the incident when the attackers borrowed more than they deposited. Blizz Finance is a liquidity protocol running on Avalanche.

 

Blizz Finance took to twitter to express its dissatisfaction at how Chainlink handled LUNA’s market crash. Chainlink was built to provide constant price updates to decentralized services via its Oracle functionality, but in this case, it failed to issue updates. This laxity is now seen as the major cause of the losses incurred by Blizz Finance and other entities.

Blizz Finance says that a post-mortem of the incident to follow.

Terra LUNA has been a pain for many investors ever since its price started a sharp downward move. The coin is currently trading at a disappointing $0.000038 and has gone further down to position 232 in the charts. Just a few weeks ago, LUNA was among the top 20 cryptos in the market and trading at over $115.

- Advertisement -

Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Albert Brownhttps://thecryptobasic.com/
Albert Brown is a cryptocurrency investor and journalist who has been in the nascent space since 2017. His love and passion for technological innovations made him delve deeper into the world of blockchain and cryptocurrencies. As a journalist, Brown has written on several crypto-related topics that have been referenced by popular industry players like Tyler Winklevoss, Binance CZ, etc.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

Can Pac-Man Frog (PAC) Outperform ApeCoin (APE) And Theta Network (THETA)?

Cryptocurrencies are all anyone has been able to talk about for the past couple of years. They are an innovative way of thinking about...

Secure DeFi Protocols: Calyx Token (CLX), Chainlink (LINK), and Aave (AAVE)

An ongoing prevalence of hacks, attacks, and exploits within the cryptocurrency space highlights the importance of verifying the security and integrity of a protocol...

Beware of Malicious Proposals, Terra (LUNA) Team Says No Dapps Launched on Terra 2.0 

Terra Team Warns Community to Beware of Malicious Proposals, Says No Decentralized Application Has Launched on Terra 2.0. ...

CZ On Terra (LUNA): “Most Stupid Design Flaw Is Thinking Minting More Of An Asset Will Increase Total Value”

  Binance CEO: Terra Had The Chance To Save Luna And UST When The De-peg Was At 5% But They Failed To Act.

Ethereum Co-Founder Vitalik Buterin Says He Is No Longer A Billionaire

The Ethereum exec was also affected by last week’s cryptocurrency dip that wreaked havoc on investors.  window.coinzilla_display...

Market Pundit: UST And Terra (Luna) Collapse Is NOT An Indication That Crypto Market Is Ending

  Crypto Market Is Not Ending Because Of Terra. window.coinzilla_display = window.coinzilla_display || ; var...

Another Top American Exchange Halting Terra USD (UST) Trading After Coinbase

Gemini follows Coinbase to halt UST trading. window.coinzilla_display = window.coinzilla_display || ; var c_display_preferences...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.