Vesu Liquidations Soar to $3M Due to Faulty Pragma Price Feed

A recent incident on Vesu, a Starknet lending protocol, led to $3 million in liquidations due to a faulty Pragma price feed. The issue occurred between 04:08 and 04:10 UTC on September 4, when the incorrect prices were fed into several Vesu liquidity pools. This caused 47 borrowing positions to appear eligible for liquidation, resulting in approximately $3 million in collateral being removed.

Vesu stated that its contracts contained no vulnerability and operated as designed during the incident. The protocol attributed the liquidations to bad inputs rather than faulty execution, saying that the contracts received incorrect collateral prices and processed the affected positions according to their rules.

A technical report covering the incident is expected to provide more information about the affected markets and the sequence of on-chain transactions. Pragma has worked with relevant organizations to deploy a fix addressing the source of the error, and liquidity pool curators have suspended affected pools as a precaution.