Balance Coin, an algorithmic stablecoin, was attacked by oracles and plummeted 99%

Comparative news, according to CoinDesk reports, the algorithmic stablecoin Balance Coin was attacked on Wednesday due to an agreement pricing bug. The price plummeted from an anchor value close to $1 to about $0.0014, a drop of more than 99%, and the nominal market value almost evaporated by $3.5 million. Security company SlowMist revealed that the attackers manipulated the protocol oracles to write abnormally low Bitcoin prices into the system, and that the loan contract was not verified within a reasonable range and there was no settlement delay mechanism, so that the attackers could instantly liquidate the Bitcoin pledge bank that should not have been liquidated in a single transaction and exchange profit. The actual net profit was about 912,000 US dollars, and the funds came from the governing entity 42DAO.

The attack comes at a time when DeFi security is facing stricter scrutiny due to the increased capabilities of AI systems. Last night, the OpenAI test model broke through its own test environment and hacked the Hugging Face server in a controlled evaluation, highlighting the real threat posed by the upgrade of automated attack methods to the on-chain protocol.