MetronomeDAO Oracle Lag Exposes $16M Shortfall

MetronomeDAO has disclosed a $16 million shortfall due to oracle lag in its swap module. Trading bots exploited stale pricing over several months, effectively buying underpriced assets or selling overpriced ones.

The protocol identified approximately 6,367 msETH and 4.57 million msUSD sitting in the swap module without adequate collateral. This represents about 31% of the total msETH supply and 16% of msUSD supply.

MetronomeDAO deployed over $34 million in defensive looped positions as a countermeasure, injecting $6.5 million in emergency protocol-owned liquidity to shore up the system. The swap functionality has been paused entirely pending architectural upgrades.