#balancecoin
balancecoin
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Balance Coin was dumped from $0.9954 down to $0.001358—down more than 99%.
Let’s make one thing clear: this is not a typical depeg. This is a direct breach of the trust layer of an algorithmic stablecoin.
Why isn’t it a normal depeg? A typical depeg usually stems from liquidity drying up or sell pressure in the market. This attack, however, directly targets 42DAO—the core entry point to the governance of the Balance Protocol ecosystem and the BLC token.
In other words: the attacker may first poison the governance layer, then use governance permissions to rewrite the stability mechanism or move away collateral, causing the entire pegging logic to fail.
PeckShield and TenArmor both detected anomalies, indicating this is not a single erroneous price feed issue, but rather a systematic exploitation of on-chain permissions, liquidity, or minting/redemption pathways.
What’s even more troubling is that the project team has not publicly disclosed the reason or any remediation plan to date.
In the world of stablecoins, silence doesn’t calm the market. Silence makes the market assume the worst case—then triggers a second wave of a bank run.
Do you think algorithmic stablecoins can still be trusted?
#BalanceCoin #42DAO #稳定币 #攻击 #algorithmic stablecoin
Let’s make one thing clear: this is not a typical depeg. This is a direct breach of the trust layer of an algorithmic stablecoin.
Why isn’t it a normal depeg? A typical depeg usually stems from liquidity drying up or sell pressure in the market. This attack, however, directly targets 42DAO—the core entry point to the governance of the Balance Protocol ecosystem and the BLC token.
In other words: the attacker may first poison the governance layer, then use governance permissions to rewrite the stability mechanism or move away collateral, causing the entire pegging logic to fail.
PeckShield and TenArmor both detected anomalies, indicating this is not a single erroneous price feed issue, but rather a systematic exploitation of on-chain permissions, liquidity, or minting/redemption pathways.
What’s even more troubling is that the project team has not publicly disclosed the reason or any remediation plan to date.
In the world of stablecoins, silence doesn’t calm the market. Silence makes the market assume the worst case—then triggers a second wave of a bank run.
Do you think algorithmic stablecoins can still be trusted?
#BalanceCoin #42DAO #稳定币 #攻击 #algorithmic stablecoin
🚨 From the dollar to zero in a blink of an eye
A "ghost price" of Bitcoin destroys the Balance stablecoin in a single transaction
The algorithmic stablecoin #BalanceCoin (#BLC ) suffered a catastrophic collapse after falling victim to extreme manipulation of its price oracle.
In a single transaction, an attacker injected a #bitcoin fictitious and unrealistically low price into the lending protocol, triggering the immediate liquidation of completely healthy vaults and draining about $912,000 in reserves. As a result, the token lost 99.9% of its value within minutes.
Attack Anatomy: Step by Step
According to security signature analyses such as SlowMist and PeckShield, the exploit was carried out through a direct flaw in the smart contract logic:
Step 1: Oracle Manipulation (Fake the price feed)
The attacker managed to alter the external data source (oracle) and injected a price of #BTC absurdly low into the lending system. The contract accepted the data immediately because it lacked range limits (sanity checks) to validate whether the price was consistent with the real market.
Step 2: False Insolvency of the Vaults (Vaults look unsafe)
Assuming that Bitcoin had crashed, the protocol instantly marked vaults as "undercollateralized" even though they were actually fully backed and secure.
Step 3: Instant Liquidation and Extraction (Seize and swap)
Without any safety wait period or delay (liquidation delay), the attacker liquidated the vaults eligible by mistake, confiscated the collateral in BTC, swapped it for profits, and left a financial hole that destroyed the stablecoin’s peg.
#Hack
$BAL
$BTC
$SOL
A "ghost price" of Bitcoin destroys the Balance stablecoin in a single transaction
The algorithmic stablecoin #BalanceCoin (#BLC ) suffered a catastrophic collapse after falling victim to extreme manipulation of its price oracle.
In a single transaction, an attacker injected a #bitcoin fictitious and unrealistically low price into the lending protocol, triggering the immediate liquidation of completely healthy vaults and draining about $912,000 in reserves. As a result, the token lost 99.9% of its value within minutes.
Attack Anatomy: Step by Step
According to security signature analyses such as SlowMist and PeckShield, the exploit was carried out through a direct flaw in the smart contract logic:
Step 1: Oracle Manipulation (Fake the price feed)
The attacker managed to alter the external data source (oracle) and injected a price of #BTC absurdly low into the lending system. The contract accepted the data immediately because it lacked range limits (sanity checks) to validate whether the price was consistent with the real market.
Step 2: False Insolvency of the Vaults (Vaults look unsafe)
Assuming that Bitcoin had crashed, the protocol instantly marked vaults as "undercollateralized" even though they were actually fully backed and secure.
Step 3: Instant Liquidation and Extraction (Seize and swap)
Without any safety wait period or delay (liquidation delay), the attacker liquidated the vaults eligible by mistake, confiscated the collateral in BTC, swapped it for profits, and left a financial hole that destroyed the stablecoin’s peg.
#Hack
$BAL
$BTC
$SOL
Anna love BNB:
Not sure how an algorithmic stablecoin still exists after Terra blew up. That kind of risk isn't for me. Always interesting hearing your take.
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