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.
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.
Case & protocol details
Attack Timeline
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.
Evidence & learning
Attack pattern
Compare incidents →Sources and on-chain records
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