Tectonic’s $75M exploit was not an oracle failure, RedStone co-founder says

RedStone has said Tectonic’s estimated $75 million exploit resulted from weak collateral controls rather than an inaccurate oracle after TONIC’s reported price rose about 100-fold in 20 minutes. Summary An onchain researcher estimated that the Tectonic exploit affected about $75 million. TONIC’s reported price increased roughly 100 times before the token was supplied as collateral. RedStone said borrow caps tied to executable liquidity could have limited the losses. Cronos has restarted after restoring its chain state to a point before the attack. RedStone co-founder Marcin Kazmierczak told crypto.news that the oracle accurately reported TONIC’s price in the pool it monitored, but Tectonic allegedly accepted the reading without checking whether the token could be sold at that valuation in meaningful size. Cronos validators halted block production on Aug. 30 after Tectonic disclosed an incident involving the decentralized lending protocol. Independent researcher Weilin Li estimated that approximately $75 million was affected, although neither Tectonic nor Cronos has confirmed the final loss. According to Li’s initial analysis, the attacker pushed TONIC’s price about 100 times higher...