Blizz Finance Hack

Reported loss $8.3M

May 13, 2022 Avalanche C Chain

Deposit collateral whose real market value is far below the lending protocol's oracle value, then overborrow genuine assets

What happened

During the Terra collapse, Blizz Finance's Avalanche lending market was drained for roughly $8.3 million after its LUNA/USD oracle stopped updating at $0.10 while LUNA traded far below that value.

Technical root cause

The Aave-v2-derived oracle integration had no protocol-level safeguard for Chainlink's LUNA minimum-answer circuit breaker or for stale and invalid price data. The protocol also lacked an emergency response path fast enough to disable the LUNA market.

How it happened

Several addresses bought or held severely devalued LUNA, deposited it as collateral at the stale $0.10 oracle value, and borrowed the market's available assets. Because Blizz could not pause immediately, its timelock delayed the response until liquidity had been exhausted.

Protocol details

Classification Lending oracle-price discrepancy / stale-price collateral overvaluation

Protocol Type Lending

Affected asset / contract BLZZ

Protocol links Website @BlizzFinance

Evidence

report Post-mortem rekt.news
report Blizz Finance Incident Disclosure twitter.com
report Blizz Finance Post-Mortem medium.com
analysis DeFiLlama defillama.com
analysis The LUNA Price Dip Exploits halborn.com
analysis SlowMist Blizz Finance Incident Record hacked.slowmist.io
analysis DeFi Protocols Exploited Through LUNA Price Feed Discrepancy ct.com

Understand the attack patterns

Compare incidents →

Oracle Manipulation & Price Manipulation

Build your security review skills

Work through hands-on labs covering real exploit mechanics, review techniques, and defensive patterns.

Start Free Trial Explore attack classes