DeFi Protocol Solend Struck by $1.26M Oracle Exploit

Solana-based decentralized finance (DeFi) protocol Solend has suffered an exploit in relation to pricing oracles, resulting in $1.26 million in bad debt.

The exploit was centered around the Hubble stablecoin (USDH) and affected the Stable, Coin98, and Kamino lending pools, according to a tweet by Solend.

A pricing oracle is a source of data that provides asset values for blockchains. Hacks and exploits related to decentralized finance, which is a form of lending that takes place without intermediaries, have surged over the past month. Security firm Chainalysis reported that $718 million had been stolen in the first two weeks of October.

Solend said that the three pools have been disabled and that exchanges have been notified of the exploiter's address.

Last month, Mango Markets – another Solana DeFi protocol, lost over $100 million in an exploit that manipulated the MNGO price on a pricing oracle before cashing out a nine-figure sum.