Defi Platform Levana Protocol reported a loss of $1.14 million due to an “Oracle Attack.”

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Decentralized finance (DeFi) platform, Levana Protocol, fell victim to an ‘oracle attack’, which resulted in $1.14 million being drained from the platform’s liquidity pool. The attack was confirmed by Levana on December 27th. Despite the significant loss, Levana’s team reassured users that the lapse has been addressed and positions for trades are set to reopen in the coming week.

The incident took place over a two-week period, with the attackers initially siphoning off 4% from the LP. But the attack saw a large jump during network congestion on Osmosis on December 26th, resulting in an additional 5% drain. Initially, Levana attributed the profit and loss changes to natural trader profits and cash deficits. As per the report, seven wallets, presumably tied to an unidentified entity, performed ‘precognition oracle attacks’ during times of network congestion. Levana, however, has clarified that the protocol’s issues aren’t linked to Osmosis as a chain, but possibly associated with the restrictions of Cosmos software development kit (SDK) and Tendermint.

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