The Levana perpetual swap protocol, operating on the Osmosis blockchain, recently suffered a significant exploit, resulting in a loss of $1.14 million. Over a 13-day period, an unauthorized party managed to drain more than $1.1 million from Levana’s liquidity pools, causing a loss of 10% of the protocol’s liquidity. The exploit was a result of a congestion attack on the Osmosis chain, combined with a bug in the fee market code and “price staleness” in Levana’s integration with the Pyth oracle.

Levana Protocol, founded in 2021, is a decentralized finance startup that facilitates leveraged positions for cryptocurrencies through a decentralized perpetual trading protocol. In response to the exploit, Levana has taken swift action to rectify the breach. The team is actively developing a comprehensive solution set to enhance the protocol’s resilience against similar vulnerabilities in the future.

While Levana has temporarily halted new position openings and modifications, existing trade positions and profits remain unaffected. The team is committed to safeguarding user assets and restoring full functionality as quickly as possible. As part of their remedial measures, Levana plans to compensate affected liquidity providers through an airdrop and the distribution of collected protocol fees during the attack period.

This approach aims to mitigate the impact of the exploit on the community and reinforce confidence in the Levana Protocol’s security and reliability. The team is working on an upcoming update across all chains hosting Levana, including Osmosis, Sei, and Injective, to further enhance the protocol’s security.

This News Article was automatically generated by Bob the Bot (AI)

Information	Details
Geography	Global
Countries
Sentiment	neutral
Relevance Score	1
People	None
Companies	Pyth, Injective, Osmosis, Sei, Levana Protocol
Currencies	None
Securities	None