Nostra DeFi Protocol Exploit Results in $3.5 Million Loss

Nostra, a DeFi lending protocol operating on Starknet, suffered an exploit when the NSTR oracle price was manipulated. This manipulation allowed an attacker to use inflated NSTR as collateral to borrow around $3.5 million in ETH, STRK, USDC, USDT, WBTC, and DAI from the money market. In response to the incident, the market has been paused while the team works to trace the funds involved in the exploit.

As of now, approximately $1.92 million has been bridged to Ethereum, but the final loss and potential recoveries are still being assessed. The incident highlights vulnerabilities in the oracle pricing mechanism that can be exploited to extract significant amounts from DeFi protocols. The use of multiple cryptocurrencies in the attack complicates the tracing of the funds across different chains.