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Sturdy Finance Exploited Due to Faulty Price Oracle

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A well-known decentralized finance (DeFi) platform, Sturdy Finance, was recently exploited, resulting in significant losses amounting to approximately $800,000.

A flawed price oracle used to determine the worth of the cB-stETH-STABLE asset was responsible for the breach, which caused widespread ripples on the platform.

Security professionals at PeckShield Incorporated explained that Sturdy Finance relied on the cB-stETH-STABLE asset, which is a synthetic stablecoin linked to the value of Ethereum staked in the Beacon Chain. It’s a great choice for DeFi users because it allows them to safely leverage their Ethereum stakes.

They also made it known that inaccuracies in user balances, collateralization ratios, and portfolio valuations resulted from the flawed price oracle’s inaccurate assessment of the value of the cB-stETH-STABLE asset. 

When Sturdy Finance learned of the hack, it promptly shut down and began looking into what had happened. The platform’s security team is said to be working to determine the root of the problem and take preventative action.

While the investigation into the breach is still ongoing, security experts, PeckShield is keeping a careful eye on the situation.

The fallout from this event will probably have an impact on the future creation of more robust security guidelines and best practices in the DeFi industry moving ahead.

Sturdy Finance, which used to be recognized as a reliable organization within the DeFi community, is now confronted with the challenge of travelling a difficult path to rehabilitate its reputation and regain the trust of its customers.

Read also: Protodanksharding and Danksharding Explained

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