By Larry Wright
The news about Solana DeFi protocols falling victim to hacks has become commonplace. The low liquidity on the DeFi protocols has resulted in easier market manipulative practices. As per the latest reports, after the $100 million exploit of Mango Markets, Solend has become the second DeFi protocol on Solana to be targeted by hackers.
Solend is a borrowing and lending protocol within the Solana ecosystem. The development team of Solend reported that around $1.5 million were stolen from the protocol as the result of the latest exploit this Wednesday. The main culprit in the matter is an Oracle-based attack.
Hackers are Treating the Solana Network as an Easy Target
Solana has started to gain notoriety in the crypto community for all the wrong reasons. In the latest oracle attack on DeFi protocol, Solend managed to steal a considerable amount of funds from oracle by overloading it with borrowing requests of high magnitude.
The solend team has come clear about the incident on Twitter. The tweet also notified its users that around 3 protocols were targeted and affected by the oracle exploit. Hackers managed to incur bad debts for Coin98, Kamino, and USDH valued at $1.2 million. The bad debt occurred when hackers borrowed massive amounts of USDH with no intention of giving it back.
Avraham Eisenberg is a game theorist who explained the main reason for the latest attacks happening on Solana. He identified low liquidity as the main culprit that left the DeFi platforms open for attack by hackers. Furthermore, when Solana was in trend, it started to accept collaterals in the form of lesser-known and dubious cryptocurrencies.
As per Eisenberg, the management of Solana should concentrate its attention on the DeFi protocols with the highest frequency of exotic tokens in the form of collaterals. He also noted that if Layer 1 solutions keep getting attacked in Solana, more DeFi protocols like Mango Markets and Solend can be at risk and lose the confidence of investors.