Weekly RiskDAO report 7 Feb ‘23

All referenced data can be accessed directly on the Vesta dashboard by RiskDAO.


BonqDAO, an overcollateralized stablecoin protocol on Polygon, was exploited for BEUR 100m. BEUR denotes BonqDAO’s EURO-pegged stablecoin. The attacker exploited BonqDAO’s implementation of the Tellor oracle and was able to artificially inflate the collateral token wALBT (AllianceBlock’s governance token).

The attacker was able to liquidate $1.5m of BEUR for ETH and USDC with the remainder being stuck as there is no exit liquidity. It appears BonqDAOs’ faulty oracle implementation relates to Tellor’s different price data: Historical prices (which are verified and checked by other validators) vs current prices (which can be reported by anyone before they are verified by other validators). BonqDAO utilized current prices which the attacker knew to manipulate in order to inflate wALBT’s price.

Sperax, an overcollateralized stablecoin protocol on Arbitrum issuing $USDS, was exploited for $300k USDS before the attack was thwarted. In a post-mortem blog post, the Sperax team admits to having introduced the bug in a code update in December 2022 which was missed during reviews. The hacker was identified and there are discussions about returning the stolen funds.

Solana-based lending protocol Everlend is shutting down. The protocol team cites missing liquidity as the main reason for not being able to offer a protocol with product-market fit.

Avi Eisenberg waves his bail and remains in jail.

Huobi is issuing $FUD “FTX User Debt” tokens in order to create a market in FTX’s user liabilities. $FUD tokens are administered by DebtDAO which “…hopes to help not only itself but also more creditors reclaim their rights and assets”.

Dashboard Highlights

The cap utilization of gOHM is steady at 90%, largely unchanged from the previous week.

The VAR for the worst day simulation stands at zero. Current MCRs are at or above recommended levels.

The weight of $VST in the VST-FRAX has increased from 74% to 79%.

Total pool collateral is holding steady around $22.5m. gOHM remains the #1 collateral asset accounting for $14m or 62% of total collateral base, followed by sGLP which stands at $4.1m (18% of total collateral) in line with last week’s levels.

Total debt amounts to $9.3m which equates to a utilization rate of 41%. The Top 10 debtors account for 48% of the total debt volume.

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