https://quadrigainitiative.com/cryptocurrencyhackscamfraudwiki/index.php?action=history&feed=atom&title=Inverse_Finance_First_Price_Oracle_Exploit 2026-04-21T13:15:04Z Revision history for this page on the wiki MediaWiki 1.39.1 https://quadrigainitiative.com/cryptocurrencyhackscamfraudwiki/index.php?title=Inverse_Finance_First_Price_Oracle_Exploit&diff=4962&oldid=prev 2023-09-01T18:50:01Z

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Azoundria https://quadrigainitiative.com/cryptocurrencyhackscamfraudwiki/index.php?title=Inverse_Finance_First_Price_Oracle_Exploit&diff=4956&oldid=prev 2023-09-01T16:04:03Z

<p>Created page with &quot;{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/inversefinancefirstpriceoracleexploit.php}} {{Unattributed Sources}} <a href="/cryptocurrencyhackscamfraudwiki/index.php?title=File:Inversefinance.jpg" title="File:Inversefinance.jpg">thumb|Inverse Finance</a> Inverse Finance, a decentralized organization, experienced a hack through price manipulation of its INV/ETH price oracle on Sushiswap. The attacker manipulated the oracle, leading to a rise in the price of INV tokens, allowing them to borrow $15.6 million worth of DOLA, ETH, WBTC,...&quot;</p> <p><b>New page</b></p><div>{{Imported Case Study|source=https://www.quadrigainitiative.com/casestudy/inversefinancefirstpriceoracleexploit.php}}<br /> {{Unattributed Sources}}<br /> <br /> [[File:Inversefinance.jpg|thumb|Inverse Finance]]<br /> Inverse Finance, a decentralized organization, experienced a hack through price manipulation of its INV/ETH price oracle on Sushiswap. The attacker manipulated the oracle, leading to a rise in the price of INV tokens, allowing them to borrow $15.6 million worth of DOLA, ETH, WBTC, and YFI. Inverse Finance paused future borrows on its money market, Anchor. This incident follows a similar exploit in April that resulted in a $15.6 million loss for the protocol. The organization plans to propose a repayment plan to its governance and is encouraging the attacker to return the funds in exchange for a bounty.<br /> <br /> This is a global/international case not involving a specific country.&lt;ref name=&quot;vauld-11609&quot; /&gt;&lt;ref name=&quot;inversefinancetwitter-11615&quot; /&gt;&lt;ref name=&quot;inversefinance-11613&quot; /&gt;&lt;ref name=&quot;inversefinancedocs-11614&quot; /&gt;<br /> <br /> == About Inverse Finance ==<br /> &quot;DOLA Borrowing Rights replace interest rates with a fixed fee that can earn you more.&quot;<br /> <br /> &quot;Inverse Finance is a decentralized autonomous organization that develops and manages the FiRM fixed rate lending protocol and DOLA, a debt-backed decentralized stablecoin. Originally founded by Nour Haridy in late 2020, the protocol is now governed by Inverse Finance DAO, a collective of crypto enthusiasts. Our code base is open source and maintained by the community.&quot;<br /> <br /> &quot;This was not the first time Inverse Finance suffered a multi-million dollar exploit this year. Earlier this April, the protocol fell prey to its first price manipulation hack and lost $15.6 million in DOLA, ETH, WBTC, and YFI.&quot;<br /> <br /> &quot;the lending protocol took to Twitter, explaining the attack and noted that the attacker used “capital-intensive manipulation of the INV/ETH price oracle on Sushiswap.” This further resulted in “a sharp rise in the price of INV, which subsequently enabled the attacker to borrow $15.6 million”. However, unlike the latest tweet from the protocol, last time they had offered “a generous bounty in exchange for returning the borrowed funds”.&quot;<br /> <br /> &quot;This morning Inverse Finance's money market, Anchor, was subject to a capital-intensive manipulation of the INV/ETH price oracle on Sushiswap, resulting in a sharp rise in the price of INV which subsequently enabled the attacker to borrow $15.6 million in DOLA, ETH, WBTC, &amp; YFI&quot;<br /> <br /> &quot;The manipulation was not a flash loan attack and was un-related to Inverse's smart contract or front end code. All future borrows on Anchor are temporarily paused.&quot;<br /> <br /> &quot;The plan to be proposed to governance is to ensure all wallets impacted by the price manipulation are repaid 100%. We have multiple avenues for accomplishing this and will provide updates as the DAO discusses our options.&quot;<br /> <br /> &quot;The person or persons behind the price manipulation are encouraged to reach out via Twitter DM or Discord and discuss a generous bounty in exchange for returning the borrowed funds.&quot;<br /> <br /> This is a global/international case not involving a specific country.<br /> <br /> The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.<br /> <br /> Include:<br /> <br /> * Known history of when and how the service was started.<br /> * What problems does the company or service claim to solve?<br /> * What marketing materials were used by the firm or business?<br /> * Audits performed, and excerpts that may have been included.<br /> * Business registration documents shown (fake or legitimate).<br /> * How were people recruited to participate?<br /> * Public warnings and announcements prior to the event.<br /> <br /> Don't Include:<br /> * Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.<br /> * Anything that wasn't reasonably knowable at the time of the event.<br /> There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.<br /> <br /> == The Reality ==<br /> This sections is included if a case involved deception or information that was unknown at the time. Examples include:<br /> <br /> * When the service was actually started (if different than the &quot;official story&quot;).<br /> * Who actually ran a service and their own personal history.<br /> * How the service was structured behind the scenes. (For example, there was no &quot;trading bot&quot;.)<br /> * Details of what audits reported and how vulnerabilities were missed during auditing.<br /> <br /> == What Happened ==<br /> The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.<br /> {| class=&quot;wikitable&quot;<br /> |+Key Event Timeline - Inverse Finance First Price Oracle Exploit<br /> !Date<br /> !Event<br /> !Description<br /> |-<br /> |April 2nd, 2022 9:44:00 AM MDT<br /> |Inverse Finance Tweet<br /> |Inverse Finance posts about the incident on Twitter.<br /> |}<br /> <br /> == Technical Details ==<br /> This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?<br /> <br /> == Total Amount Lost ==<br /> The total amount lost has been estimated at $15,500,000 USD.<br /> <br /> How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?<br /> <br /> == Immediate Reactions ==<br /> How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?<br /> <br /> == Ultimate Outcome ==<br /> What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?<br /> <br /> == Total Amount Recovered ==<br /> The total amount recovered is unknown.<br /> <br /> What funds were recovered? What funds were reimbursed for those affected users?<br /> <br /> == Ongoing Developments ==<br /> What parts of this case are still remaining to be concluded?<br /> == Individual Prevention Policies ==<br /> {{Prevention:Individuals:Placeholder}}<br /> <br /> {{Prevention:Individuals:End}}<br /> <br /> == Platform Prevention Policies ==<br /> {{Prevention:Platforms:Placeholder}}<br /> <br /> {{Prevention:Platforms:End}}<br /> <br /> == Regulatory Prevention Policies ==<br /> {{Prevention:Regulators:Placeholder}}<br /> <br /> {{Prevention:Regulators:End}}<br /> <br /> == References ==<br /> &lt;references&gt;&lt;ref name=&quot;vauld-11609&quot;&gt;[https://www.vauld.com/insights/defi-hack-inverse-finance-exploited-for-the-second-time-this-year/ DeFi Hack: Inverse Finance Exploited For The Second Time This Year   - Vauld Insights] (Aug 25, 2023)&lt;/ref&gt;<br /> <br /> &lt;ref name=&quot;inversefinancetwitter-11615&quot;&gt;[https://twitter.com/InverseFinance/status/1510282040809299972 @InverseFinance Twitter] (Aug 25, 2023)&lt;/ref&gt;<br /> <br /> &lt;ref name=&quot;inversefinance-11613&quot;&gt;[https://www.inverse.finance/ Inverse Finance] (Aug 25, 2023)&lt;/ref&gt;<br /> <br /> &lt;ref name=&quot;inversefinancedocs-11614&quot;&gt;[https://docs.inverse.finance/inverse-finance/inverse-finance/introduction Introduction - Inverse Finance] (Aug 25, 2023)&lt;/ref&gt;&lt;/references&gt;</div>

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