An oracle pricing exploit drained $912K from Balance Coin, crashing its value from $1 to $0.0014 and erasing $3.5 million in market cap.
Algorithmic stablecoin Balance Coin collapsed over 99% in value after an oracle pricing exploit, dropping from nearly $1 to $0.0014. The attack wiped out roughly $3.5 million in nominal market capitalization, according to on-chain data.
The exploit involved an attacker feeding the protocol an artificially low Bitcoin price, enabling the liquidation of ineligible vaults. Security firm SlowMist reported that approximately $912K was drained from 42DAO in a single transaction during the incident.
The event highlights vulnerabilities in algorithmic stablecoin designs reliant on external price oracles, following similar past exploits in decentralized finance protocols.