Bonzo Lend on Hedera Loses $9M in Oracle Attack
Hedera's largest lending protocol, Bonzo Lend, suffered a $9 million exploit after an attacker manipulated a third-party price oracle, inflating the SAUCE token price by a trillion times to borrow against minimal collateral.
Bonzo Lend, the largest lending protocol in the Hedera ecosystem, has been exploited for over $9 million. According to a preliminary investigation by the Bonzo Finance team, the attacker compromised a third-party price oracle and artificially inflated the quoted price of the SAUCE token by a factor of one trillion.
With the manipulated oracle, the attacker was able to borrow USDC and wHBAR using only 250 SAUCE as collateral — effectively near-zero security. The incident highlights ongoing risks around oracle dependency in decentralized finance.
The team is continuing its investigation. No further details on the attacker's identity or recovery plans have been released.
Source: ForkLog