Bonzo Lend, a non-custodial lending and borrowing protocol built on the Hedera [HBAR] network, recently suffered an exploit that resulted in losses of $9.05 million.
The attack was made possible by a flaw in Supra's signature verification, which allowed the attacker to manipulate SAUCE price feeds and secure undercollateralized loans before the protocol halted activity.
Preliminary findings indicate that the breach was not due to any compromise of Bonzo Lend's smart contracts or Hedera's core network, but rather a vulnerability in external oracle infrastructure.
The exploit had a significant impact on market sentiment, with HBAR falling to $0.068 and Hedera's DeFi TVL plummeting 21.43% to $25.4 million.
Experts warn that the incident highlights the growing importance of resilient price oracles in DeFi lending protocols and the need for stronger oracle safeguards and verification standards.