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vUSD

Definition ∞ vUSD refers to a virtual currency or stablecoin designed to maintain a stable value equivalent to one United States dollar. Such tokens aim to mitigate price volatility inherent in other digital assets, often by holding collateralized reserves of fiat currency or other assets. They serve as a crucial liquidity and settlement instrument within decentralized finance applications and digital asset trading platforms. The stability offered by vUSD facilitates predictable transactions and value storage in the crypto economy.
Context ∞ The operational transparency and reserve attestations for tokens like vUSD are frequently debated among market participants and regulators. Ensuring the integrity and redeemability of its backing assets remains a key area of scrutiny. Its utility is often seen in enabling efficient, low-volatility transfers within blockchain networks, bypassing traditional banking channels.

A luminous, translucent blue substance, densely textured with interconnected bubbles, is precisely contained within a sleek, metallic and dark blue mechanical apparatus. This intricate system evokes a secure environment for a dynamic decentralized finance DeFi protocol, perhaps visualizing liquidity pool operations or smart contract execution. The effervescent state suggests active on-chain data processing or the distributed nature of validator nodes. The robust enclosure signifies cryptographic security and the integrity of a distributed ledger technology DLT, ensuring immutable transaction finality within a complex tokenomics framework.

→Lending Protocol

→Lending Markets

→Asset

Onyx Protocol NFT Liquidation Contract Exploited, $3.8 Million Drained

A critical vulnerability within Onyx Protocol's NFT Liquidation contract allowed an attacker to drain $3.8 million in vUSD stablecoins.

A clear, complex, interwoven transparent structure dominates the foreground, resembling a sophisticated algorithmic framework. Behind it, a deep blue, blurred form suggests underlying data streams or a core digital asset pool. This visualization abstractly represents the intricate protocol architecture essential for decentralized ledger technology DLT. Its transparent nature reflects the auditability and immutability inherent in cryptographic primitives, while the interwoven design signifies robust interoperability and the secure execution of a distributed consensus mechanism within a blockchain network.

→Asset Drain

→Smart Contract

→Web3 Security

Onyx Protocol Suffers $3.8 Million NFT Liquidation Contract Exploit

A critical flaw in the NFT liquidation contract allowed attackers to drain stablecoin reserves, compromising protocol integrity and asset peg.

A futuristic, metallic device features a prominent central transparent dome encasing intricate, glowing blue circuit patterns. This visual metaphor represents a secure enclave for cryptographic operations, potentially illustrating a hardware wallet's secure element or a decentralized ledger's core processing unit. The design emphasizes robust Web3 infrastructure, ensuring data integrity and immutable record keeping. Its complex internal structure suggests advanced smart contract execution and node synchronization within a distributed network, vital for digital asset security and transaction finality. The aesthetic evokes high-performance blockchain architecture.

→Liquidation Contract

→Digital Asset

→Financial Loss

Onyx Protocol Suffers $3.8 Million Exploit via NFT Liquidation Contract

A critical flaw in Onyx Protocol's NFT liquidation contract enabled an attacker to drain $3.8 million, compromising stablecoin peg integrity.

An intricate mechanical assembly, resembling a precision watch movement, forms the foundation. A silver, circular cryptocurrency token, possibly an algorithmic stablecoin, is embedded within this sophisticated protocol mechanics. Above it, a complex, vibrant blue structure of interconnected cubic blocks represents dynamic blockchain infrastructure and decentralized ledger technology. This visual narrative emphasizes the underlying engineering and smart contract execution supporting digital asset tokenization within a robust DeFi ecosystem, illustrating the transition from traditional mechanisms to advanced distributed systems.

→Code Audit

→Exploit

→DeFi

Onyx Protocol NFT Liquidation Contract Exploited, Draining $3.8 Million

A critical flaw in Onyx Protocol's NFT liquidation contract enabled vUSD stablecoin draining, highlighting risks in complex DeFi contract interactions.