Pragma flags 6 price feeds as critical risk following $3.5M Starknet lending exploit

According to CryptoSlate, oracle provider Pragma classified six of 22 mainnet market and rate feeds as critical risk in a Sept. 18 assessment. The evaluation followed a Sept. 17 borrowing exploit involving Nostra, a lending protocol on Starknet. Nostra stated that a manipulated NSTR oracle price permitted an account to borrow roughly $3.5 million in other assets against NSTR collateral.

Pragma assigned critical status to BROTHER, DAI, DOG, EKUBO, LORDS, and NSTR, with nine additional feeds categorized as high risk. The assessment highlights a gap between oracle valuations and the liquidity required for lenders to sell collateral during liquidations. For token quantities valued by the oracle at $10,000, sell-quote deterioration reached approximately 15% for NSTR, 17% for EKUBO, 22% for LORDS, and 20% for BROTHER.

Following the exploit, Nostra paused lending, borrowing, withdrawals, and liquidations. Nostra reported that final losses and potential recoveries remained unknown, while Pragma noted that the attacker’s address had been frozen and recovery efforts were underway.