Nitron Demex Hack

On May 16, 2025, Demex’s lending platform Nitron was exploited through an oracle manipulation attack, leading to a loss of approximately $950,559. The exploit affected only the Nitron markets, while spot and perpetual trading on Demex remained unaffected.

The attacker manipulated the price oracle for the deprecated dGLP vault, which had low TVL due to prior user withdrawals. By donating fsGLP to the vault, they artificially inflated its redemption rate. This manipulated value was then propagated across Nitron markets via the Demex oracle.

Using the falsely elevated price of dGLP as collateral, the attacker borrowed real assets and withdrew them for profit. The root causes included a misused audited contract not intended for oracle use, failure to implement a price cap safeguard, and the omission of zeroing out LTV and supply caps after the vault was deprecated.