Pragma Price Feed Glitch Wipes Out $3 Million in Starknet Liquidations

A recent incident on Starknet's lending protocol Vesu has raised questions about the reliability of external price feeds in decentralized finance. On September 4, a faulty Pragma price feed caused 47 borrowing positions worth $3 million to be liquidated within two minutes.

The error occurred between 04:08 and 04:10 UTC when Pragma's feed reported incorrect prices to several Vesu liquidity pools. Although the protocol's smart contracts had no vulnerability, they executed correctly on the bad data, leading to unwanted liquidations.

Vesu has collaborated with Pragma, StarkWare, Starknet Foundation, and pool curators to recover the collateral taken during the incident. However, no reimbursement amount or timeline has been confirmed, leaving users in uncertainty.