Balance stablecoin collapses 99% after $1 million exploit drains its bitcoin vaults
An attacker fed the lending system a fake, abnormally low bitcoin price, liquidated vaults that should have been safe, and pocketed the difference in a single transaction.
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Summary
- Balance Coin, an algorithmic stablecoin designed to hold a $1 peg, crashed more than 99% to about $0.0014 after an attacker exploited a pricing flaw in its protocol.
- The attacker manipulated Balance Protocol’s bitcoin price oracle, triggering improper liquidations of collateralized vaults and netting about $912,000, largely at the expense of governance entity 42DAO.
- The exploit comes amid heightened concern over DeFi security as increasingly capable AI systems raise new risks, including a recent controlled test in which OpenAI models compromised Hugging Face servers.
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In Q2; TRON’s stablecoin dominance rose to 28.7%, USDT supply on TRON hit $89B ATH, $89M in protocol fees (2nd to Hyperliquid), TRX +3%, and deepening institutional & agentic reach.
In Q2; TRON’s stablecoin dominance rose to 28.7%, USDT supply on TRON hit $89B ATH, $89M in protocol fees (2nd to Hyperliquid), TRX +3%, and deepening institutional & agentic reach.
Why it matters:
In Q2; TRON’s stablecoin dominance rose to 28.7%, USDT supply on TRON hit $89B ATH, $89M in protocol fees (2nd to Hyperliquid), TRX +3%, and deepening institutional & agentic reach.
