Is there a problem with the Oracle of DeFi lending “Tender.fi”? Virtual currency equivalent to 200 million yen is illegally lent

Virtual currency returned

Arbitrum-based DeFi (decentralized finance) lending platform “Tender.fi” announced on the 7th that it would suspend its services and conduct an investigation after detecting an abnormal amount of lending.

Details will be announced in the future, but according to analysis by blockchain security company PeckShield and others, it seems that the target loan was executed due to an issue with Oracle. The user who borrowed the crypto assets (virtual currency) this time received a reward from Tender.fi for discovering the problem, and has already returned the virtual currency after deducting the amount.

It seems all *borrowed* funds from the price oracle glitch are now returned back to the @tender_fi pool. https://t.co/NjDMjOGkaS https://t.co/C1Ai6zBWLn pic.twitter.com/xDMsplwRac

— PeckShield Inc. (@peckshield) March 7, 2023

This lending occurs on the L2 network “Arbitrum” of Ethereum (ETH). It is said that the target user was able to borrow multiple cryptocurrencies worth 200 million yen by using GMX tokens and using 1 GMX (equivalent to 9,700 yen) as collateral.

Due to the misconfigured oracle of https://t.co/Hw715UqCeV, a white hat “0x896d” borrowed ~$1.59M assets by depositing only 1 $GMX($71).

If you have deposited assets on https://t.co/Hw715UqCeV, please pay attention! https://t.co/XO3yQHwk3M pic.twitter.com/G96h2EC0Fm

— Lookonchain (@lookonchain) March 7, 2023

Tender.fi reports that it is negotiating with the target after the loan is made. He explained that as a result of the negotiations, about 62 ETH (equivalent to 13.2 million yen) was given as a reward, and the amount after deducting it was recovered.

connection:What is “Lending (Lending Virtual Currency)” | How to Lend Virtual Currency and Earn Profit

Possibility of white hat hackers

Tender.fi claimed that the amount given as a reward was returned to the protocol, and that there was no impact on the user’s assets. He called the user a “white hat hacker”, implying no malicious intent.

Translation: The White Hat will repay all loans minus 62.158670296 ETH, which will be kept as a Bounty for helping secure the protocol. The https://t.co/H4ZMPLH9pz Team will repay the Bounty s value to the protocol, so that there will be no bad debt and users will remain… https://t.co/5bbmKu7zEe

—Tender.fi (@tender_fi) March 7, 2023

According to Cointelegraph, which interviewed CertiK, which audits smart contracts, the following is the message from the hacker, which can be viewed in Arbitrum’s explorer. It states that Oracle may be misconfigured and urges them to contact them if they want to resolve the issue.

Source: Arbiscan

Due to this issue, the price of the TND token used on Tender.fi plummeted. According to data from CoinGecko, the price was around ¥350 ($2.56) at the time of this writing, down more than 31% over the 24-hour period.

connection: What is DeFi (decentralized finance) | A thorough explanation of the advantages and disadvantages that even beginners can understand

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