Incident Overview
On March 28, 2025, Vicuna Finance was exploited via an oracle manipulation attack, leading to a loss of approximately $700K. Only the S Market and Stablecoin Market were affected, while the Main Protocol remains safe and operational.
The attack targeted oracle price feeds used in Vicuna’s S Market and Stablecoin Market. By manipulating price data, the attacker was able to unfairly borrow and drain funds from the protocol. This caused about 40% of total funds in affected markets to be lost.
In response, Vicuna is redistributing remaining assets to users based on net supply positions between two snapshot points. While Gems and point farming on Sonic have been revoked, users will be able to review and claim funds via a dedicated claim page, with support provided for disputes.
Incident Report
Protocol Information
Market Context at Time of Hack
What the Attacker Needed to Succeed
Understanding the prerequisites for this type of attack helps auditors identify protocols that are most at risk and helps developers build better defenses.
What Auditors Should Check
If you're auditing a protocol with similar architecture to Vicuna, these are the critical security checks that could have prevented this incident (March 2025).
- Verify all logic paths related to Oracle Issue are guarded by proper access controls and input validation - see the Oracle Manipulation & Price Manipulation attack class for patterns
- Audit oracle price feeds for manipulation risks - ensure time-weighted average prices (TWAPs) or multi-source aggregators are used, not spot prices
- Review privileged functions (owner, admin, governance) for potential abuse vectors - centralization risks should be documented and bounded with timelocks or multi-sigs
Master these auditing techniques with hands-on labs and real exploit scenarios in the Smart Contract Hacking course.
Free TrialRelated Attack Classes
The technique used in this hack maps to these vulnerability classes in our security curriculum:
Sources & References
Learn to Prevent the Next Vicuna
The Vicuna hack is one of many attacks that skilled auditors are trained to detect before deployment. Master real exploit patterns and defense techniques with hands-on Web3 security training.