Price Feed Vulnerability

Definition ∞ Price feed vulnerability describes a weakness in the mechanism that supplies external market price data to smart contracts on a blockchain, potentially leading to inaccurate or manipulated asset valuations. These vulnerabilities can arise from reliance on centralized data sources, insufficient data aggregation, or oracle network exploits. A compromised price feed can result in incorrect liquidations, unfair swaps, or unauthorized fund transfers within decentralized finance protocols. It represents a critical attack vector.
Context ∞ Price feed vulnerability is a paramount security concern in decentralized finance, frequently highlighted in reports on protocol exploits and asset losses. A key discussion centers on the development and adoption of decentralized oracle networks that provide robust, tamper-resistant price data. Future efforts will prioritize enhancing the decentralization, redundancy, and cryptographic security of these price feeds to protect DeFi applications.

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→Asset Valuation Error

→DeFi Security Flaw

→Oracle Manipulation

Moonwell Lending Protocol Drained Exploiting Collateral Price Oracle Flaw

A temporary oracle failure mispriced a wrapped staked asset, allowing a flash-loan-enabled over-collateralized borrowing and a $1.1 million asset drain.

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→On-Chain Forensics

→Wrapped Staked Ether

→State Manipulation

Moonwell Lending Protocol Exploited via Oracle Price Manipulation on Base Network

A temporary oracle malfunction mispriced collateral, enabling a classic economic exploit that allowed the attacker to over-borrow and drain assets.

A futuristic, translucent blue spherical object, resembling a secure network node, displays dynamic on-chain data. Its central aperture reveals a vibrant candlestick chart, depicting real-time price action and market volatility with bullish blue and bearish red patterns. Metallic grilles partially obscure the display, suggesting cryptographic security and structured data flow within a decentralized finance DeFi protocol. This digital asset representation encapsulates complex blockchain analytics and trading algorithms.

→External Data Validation

→Base Network Security

→Asset Overvaluation

Lending Protocol Moonwell Drained via Oracle Mispricing Flaw on Base

External oracle volatility introduced a critical state-manipulation vector, allowing an attacker to leverage mispriced collateral for recursive asset drain.

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→Sui Blockchain

→Liquidity Pool Drain

→On-Chain Forensics

DeFi Protocol Typus Drained $3.4 Million via Oracle Price Manipulation

A critical missing authorization check in the oracle contract's `update_v2()` function allowed unauthorized price manipulation, directly compromising the TLP and draining $3.44M in assets.

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→Price Feed Vulnerability

→Systemic DeFi Risk

→In-Block Transaction

Moonwell Lending Protocol Exploited via Oracle Price Manipulation

Critical oracle mispricing allowed a malicious actor to over-collateralize minimal assets, draining $1.1 million in a rapid attack.

→Chainlink Dependency

→Asset Protection

→External Dependency

Lending Protocol Exploited via Oracle Mispricing on Base Network

An external oracle failure mispriced wrstETH collateral, allowing the attacker to borrow millions against negligible deposit value, compromising protocol solvency.

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→Scroll Network Incident

→Cross-Chain Risk

→External Data Dependency

Lending Protocol Rho Markets Drained via Oracle Price Manipulation on Scroll

The Rho Markets lending protocol was drained of $7.6 million by a compromised oracle, proving external data dependency remains a critical attack surface.