Edel Finance

3 months agoNews Editor

Edel Finance Loses $403K in wGOOGLx Price Manipulation Attack; Team Bears Bad Debt, Aims to Resume Withdrawals in 48 Hours

Lending protocol Edel Finance suffered a price manipulation attack exploiting its wGOOGLx collateral mechanism, resulting in approximately $403,000 in bad debt. The team has paused all V1 contracts and plans to restore normal operations, including withdrawals, within 48 hours. Users will face no losses as the team will absorb the bad debt and restore affected deposits at a 1:1 ratio. The attacker netted about $204,000 through the exploit. Edel has tracked the on-chain trail, is coordinating with exchanges, and has offered a white-hat bounty to the attacker. The incident highlights the vulnerability of collateral pricing reliant on a single asset's internal balance.