DeFi altcoin project Tender.fi, which is suspending borrowing, is falling over 30%. The project team reported that the protocol overpays for borrowing requests and they are trying to solve the problem.
DeFi altcoin project announces restriction decision
TND, the native token of decentralized finance (DeFi) protocol Tender.fi, fell 34% after the platform announced on Tuesday that it had stopped borrowing. TND, which is mostly traded on decentralized exchange Uniswap, bottomed out at $1.99 from Monday’s high of $3.56. The double-digit drop is picking up at the time of writing. TND price is trading at $2.4, where the day’s depreciation is down by as much as 8%.
White hat hacker stepped in
The Tender.fi team said on Twitter, “We are investigating an unusual amount of borrowing coming through the protocol – meanwhile we have stopped all borrowing. Thank you for your patience.”
We are investigating an unusual amount of borrows that came through the protocol- in the meantime, we have paused all borrowing. Thank you for your patience.
— Tender.fi (@tender_fi) March 7, 2023
The team reported that they were working with a white hat hacker shortly after the above statement. The protocol is currently being stress tested. According to the team’s statements, “we are discussing how we can rectify the situation. We will update you with more information as we receive it.”
The whitehat has made contact over debank and we are currently in discussions on how to remedy this situation. We will update you with more information when we have it.
— Tender.fi (@tender_fi) March 7, 2023
With $71, $1.59 million could be borrowed
Blockchain detective Lookonchain said that due to a misconfigured pricing oracle contract, a bona fide hacker was able to borrow $1.59 million despite depositing only one GMX worth $71. White hat hackers are people who attack the platform before returning their hacking gains.
The hacker also sent the following message to Tender.fi: “It seems that the oracle contract is misconfigured. Contact me to resolve this.“ Currently, Tender.fi’s funds are in safe hands, but the hacker could claim a large reward.
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
DeFi altcoin suffers biggest drop of the week
The DeFi altcoin was trading at $3.79 earlier today and soon dropped to $1.75. At the time of writing, sellers continue to put pressure on price.
Tender.fi is a decentralized open source protocol for borrowing and lending that leads innovation. It aims to provide automatic consolidation and collateral support for popular DeFi assets, starting with GMX and GLP. Tender.fi’s approach to borrowing and lending is where it differs from DeFi protocols.
As we reported as Kriptokoin.com, the security vulnerabilities of Algorand (ALGO), which is among the top 50 according to its market value, came to the fore today. Allegedly, the Algrorand team has been ignoring a series of hacking attacks in recent weeks.
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