Anchor Hack

What happened

On May 29, 2022, an Anchor Protocol oracle error valued LUNC at $5 despite a much lower market value during the Terra 2.0 launch. Reporting said a user deposited about 20 million Lido Bonded Luna tokens, which Anchor treated as about $100 million rather than roughly $200,000, then borrowed 40 million UST and realized about $800,000 in profit before the issue was fixed.

How it happened

1. Anchor's collateral oracle reported LUNC at $5 despite a much lower actual value.
2. A user deposited about 20 million Lido Bonded Luna tokens, which the platform consequently valued at about $100 million.
3. The user borrowed 40 million UST and withdrew at a reported profit of about $800,000.
4. Other users reportedly tried to use the same pricing error, but the team fixed it before additional reported extraction.

Protocol details

Classification Oracle Manipulation

Protocol Type Lending

Implementation language Solidity

Protocol links Website @anchor_protocol

Evidence

• analysis DeFiLlama defillama.com
• analysis Anchor Protocol Got Exploited with Launch of Luna 2.0, User Makes "Free" $800,000 u.today
• analysis Crypto Daily Digest - May 30th tokeninsight.com

Understand the attack patterns

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Oracle Manipulation & Price Manipulation