Decentralized peer-to-peer lending protocol Onyx Protocol lost roughly $2.1 million in an exploit of a market with no liquidity that was deployed on Oct. 27. 

The Onyx Protocol hacker exploited a known bug, a rounding issue behind the popular CompoundV2 fork, explained blockchain investigator PeckShield soon after alerting about the hack that went unnoticed by the protocol.

#PeckShieldAlert @OnyxProtocol has been exploited for ~2.1M pic.twitter.com/5Z50tCg6MD

— PeckShieldAlert (@PeckShieldAlert) November 1, 2023

The alleged liquidity lacking oPEPE market was “abused with donation to borrow funds from other markets with liquidity,” found PeckShield’s independent investigation on…

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