Compound liquidated positions on $89 million due to outage of Coinbase price oracle for DAI token

User positions on $89 million were liquidated 26 November in the DeFi Compound protocol. The reason could be the vulnerability of the oracle for stablecoin DAI.

A clear error or malicious attack
On the stream of quotations of stablecoin DAI, Provided by the oracle Coinbase, They raised the price the cryptocutor, for example, up to $1.03, As a result, some compound users were not provided with a pledge, the cost of which was lower than the loan amount. According to Loanscan, Because of this, Compound was eliminated by user positions approximately $89 million.

Compound receives price data from Coinbase Pro. Based on the rules of the protocol, Such a change in price could mean only one – forced elimination of the position of the borrower with a lack of support. According to the general director of the analytical company Nansen Alexa Svanevika (Alex svanevik), The problem touched the third largest "farmer" comp, who was eliminated on $46 million. Svanevik said:

“As far as I can judge, Compound worked just like that, How it should. But there are questions to the oracle ".

Compound, The third largest platform Defi, allows users to occupy crypto assets, eg, DAI, At each other. However, to receive a loan, the user must provide security, exceeding the amount, which he borrows. It means, that all loans should have excess support. When the price of DAI jumped due, There was a liquidation of positions, since the loans were not enough secure.

for instance, If the Compound user lended the equivalent $100 в come on, and then the price of stablecoin increased to $1.03, it means, that the amount of the user loan also increased to $103. but, If the pledge of the user is less than this amount, the loan will be considered insufficiently wealthy, and compound eliminates the position.

This is the largest liquidation on the platform during its existence. In July this year, on Compound for 24 an hour of liquidation of positions in the amount $6.3 million. Some industry participants criticized Compound for, that it relies on the data of the centralized Coinbase platform to obtain information about prices.

Recently co -founder Chainlink Sergey Nazarov said, that attacks using fast loans for Defi protocols will continue due to methods for obtaining price data with applications.