Arbitrum-Based Lending Platform Tender.fi Suspends Services After Abnormal Borrowing Detected
Tender.fi, a lending platform built on the Arbitrum network, announced on March 7th that it had temporarily suspended its services for investigation, after detecting abnormal amounts of lending. The platform’s security was reportedly breached, and a significant amount of virtual currency was borrowed. The incident was caused by an oracle problem, according to analysis by blockchain security company PeckShield.
It seems all *borrowed* funds from the price oracle glitch are now returned back to the @tender_fi pool. https://t.co/NjDMjOGkaS https://t.co/C1Ai6zBWLn pic.twitter.com/xDMsplwRac
— PeckShield Inc. (@peckshield) March 7, 2023
Users who borrowed cryptocurrency during the incident have already returned the borrowed funds to Tender.fi, after receiving a reward for discovering the problem. The lending occurred on Arbitrum, the Ethereum (ETH) Layer 2 network, and users were able to borrow multiple cryptocurrencies worth $1.59M by pledging 1 GMX token ($71) as collateral.
Due to the misconfigured oracle of https://t.co/Hw715UqCeV, a white hat “0x896d” borrowed ~$1.59M assets by depositing only 1 $GMX($71).
If you have deposited assets on https://t.co/Hw715UqCeV, please pay attention!https://t.co/XO3yQHwk3M pic.twitter.com/G96h2EC0Fm
— Lookonchain (@lookonchain) March 7, 2023
Tender.fi reported that it is negotiating with those affected by the incident, and has offered a reward of approximately 62 ETH to compensate them. The platform explained that the reward was taken from its protocol, and users’ assets were not affected.
The incident was reportedly caused by an oracle configuration issue, as stated in a message from the hacker on Arbitrum’s explorer. The hacker encouraged Tender.fi to contact them to resolve the issue.
Tender.fi’s TND token, which is used on the platform, has experienced a sharp decline in price as a result of the incident. At the time of writing, the token’s price had dropped by more than 30% in 24 hours, trading at $2,51, according to data from CoinGecko.
The incident highlights the importance of security measures for DeFi platforms and their underlying networks, particularly in the context of cryptocurrency lending. Tender.fi’s response to the incident has been prompt and transparent, and it remains to be seen whether the platform will be able to regain users’ trust and recover from the incident.
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