Metronome's Synthetic Tokens Plagued by $15.7 Million Unbacked Float

Metronome's synthetic tokens have accumulated an unbacked float of $15.7 million due to a lag in Chainlink's price feed, which has been exploited by trading bots for months.

The issue affects about 31% of all msETH and 16% of all msUSD in existence, with the protocol staging $34 million in defensive positions to close the gap.

Metronome acknowledged that its fee design did not properly account for Chainlink's latency, which has been outside its accuracy band on Base by as much as 18.5% since the protocol launched there.