Vesu Oracle Incident Triggers $3M in Liquidations Amid Pragma Price Feed Snafu
A recent oracle incident on Vesu, a Starknet lending protocol, resulted in $3 million in liquidations across 47 positions. The issue occurred when a faulty Pragma price feed supplied incorrect data to Vesu's contracts between 04:08 and 04:10 UTC on September 4.
The incorrect prices reached several of Vesu's liquidity pools, making the affected borrowing positions appear eligible for liquidation. Automated liquidators removed approximately $3 million in collateral before the Pragma price feed corrected itself within two minutes.
Vesu maintains that its contracts worked as programmed and contained no protocol vulnerability. The company is coordinating with Pragma, StarkWare, the Starknet Foundation, and affected pool curators to recover funds collected through the liquidations.
The recovery process for users whose positions were liquidated during the incident will be handled by Vesu, although the details of how this will work have not yet been disclosed. Borrowers who had their positions liquidated are advised to open a support ticket on Vesu's Discord server, while Earn depositors are instructed to keep their positions open to preserve possible refund eligibility.