Balance Coin Plummets 99%, Exposing Oracle and Liquidation Vulnerabilities

Balance Coin has dropped over 99% following hacking allegations. Marketed as an algorithm-based stablecoin linked to the dollar, its price defense collapsed under an attack that exploited security loopholes. According to CoinMarketCap on the 22nd, Balance Coin fell to $0.001358, plummeting from $0.9954. Blockchain security firm SlowMist explained that the attacker manipulated the Binance Bitcoin (BTCB) oracle price to an 'abnormally low' level, liquidating several BTCB vaults. It is analyzed that the attacker then exchanged the extracted assets for profit. SlowMist stated that a single trading combination of a maker-style system lacking price protection mechanisms and liquidation delays was exploited in the attack. This incident appears to reveal the weaknesses in the DeFi structure where price input values and liquidation logic are intertwined. Blockchain security firm PeckShield estimates that 42DAO suffered a loss of approximately $915,000 due to this exploit. Applying an exchange rate of 1,469.90 won to the dollar, this amounts to about 1.349 billion won. The Balance Protocol operates the Balance Coin, a dollar-pegged stablecoin primarily collateralized by Bitcoin Cash (BCH). As the DeFi market grows, the reliability of price feeds and automated liquidation structures is emerging as a key risk.

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