Oops! They Did It Again!

So, here we are once more, folks! Our dear friend Pragma has waved a big red flag over six token price feeds, calling them critical risks. In a special recap on September 18, they warned everybody to tighten their belts and maybe hide their wallets. It turns out that just because a token’s price looks nice and shiny doesn’t mean it can be sold to cover that juicy loan. Yikes!

The $3.5 Million Mystery

Just a day before, on September 17, there was a bit of a kerfuffle over at Nostra, a lending hub on Starknet. Someone figured out how to play the oracle game and ended up borrowing $3.5 million worth of assets, all thanks to a funky price manipulation trick! Talk about a magical disappearing act!

Who’s on the Naughty List?

Now, Pragma didn’t just fall asleep at the wheel. They slapped a critical sticker on BROTHER, DAI, DOG, EKUBO, LORDS, and, of course, our star of the show, NSTR. But wait, there’s more! Nine other feeds made it to the high-risk section too. It’s like a game of Risk, but without the fun part!

What’s the Deal with Oracles?

Here’s the lowdown: oracles give us a price, and liquidation means selling off collateral faster than a toddler grabs candy. But if there’s not enough market liquidity, you could be stuck with a sweet price that you can’t actually sell at without losing your shirt. So, if the oracle says you’ve got $10,000 worth of tokens, if you try to sell, don’t be surprised if you only get 85 cents back!

DAI’s Drama

Pragma’s concerns don’t stop there! They’ve got some beef with DAI regarding where it sources its prices. Old and new token routes have their own funky little curves, and that can make things look a lot worse than they are. They’re not saying DAI is totally broken — just, you know, a little off-kilter!

Unpacking the Incident

Now let’s rewind to that September 17 incident, where things got hot. Pragma highlighted that the oracle’s failure was due to two questionable sources. They believe that if they had enforced their fancy three-source rule, this whole mess could’ve been avoided. Lesson learned, right?

No Cash for You!

And for the innocent depositors? Well, they found themselves in a tight spot as Nostra hit the brakes on lending, borrowing, withdrawals, and liquidations. It’s the financial equivalent of a room full of toddlers being told it’s time to go home!

What Comes Next?

The aftermath? Nostra’s still playing hide-and-seek with funds, and the final losses? Totally up in the air, much like your bank account when you realize you’ve been spending too much at Starbucks. They did freeze the bad guy’s account, so that’s a plus!

Wrapping It All Up

So, what’s the moral of the story here? Just because there’s a price listed doesn’t mean it’s a done deal for lenders. They need to play it smart and figure out which assets can actually be used for collateral and whether they can sell them when push comes to shove. The world of crypto sure keeps us on our toes, doesn’t it?