Rho Markets Back Online After Oracle Issue Led To $7.6M Loss

Decentralized financial methodologies Rho Markets has resumed operations after a poorly configured Oracle issue enabling a MEV bot to grab $7.6 million in stablecoins.

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Protocol Resumes Operations

Declared on July 21 the conclusion of simulations to repay all outstanding money to the relevant pools, Rho Markets is a Scroll-based liquidity layer and lending system. Not too long after, the protocol confirmed that money had been successfully moved and was back up on X.

The incident occurred on July 19 and resulted into unstablecoins worth $7.6 million lost due to inadequate setup. Declaring their haste to repay the money, the entity behind the poorly configured post-MEV (maximal extractable value) bot wrote a onchain message to the Rho Markets team. The entity noted that the problem came from a configuration mistake rather than an exploit or attack and urged the Rho Markets team to acknowledge this and document the efforts done to prevent such incidents.

Community Support and Enhanced Security Measures

Thanks to its customers and community support, Rho Markets stated on July 22 and promised to implement more stringent security measures. Among other third-party partners for further security, the protocol indicated aspirations to incorporate smart contract audits and on-chain data monitoring. Rho Markets will also improve internal security by way of many internal examinations and extensive simulation environment testing.

The company informed customers that there was no financial damage resulting from the accident.

Impact on Total Value Locked (TVL)

Following the misconfiguration, Rho Markets’ total value locked (TVL) dropped 54% from $51 million to $23.4 million, DefiLlama notes. Right now the TVL still stands at $24.6 million.

READ: Bitcoin Whales Accumulate $1.38 Billion Amid Price Slump

Recent Crypto Hacks

The occurrence at Rho Markets adds to an already noteworthy series of crypto assaults. Using the Li.Fi protocol utilized for $10 million on July 16, WazirX, a crypto exchange, hacked for almost $230 million last week, ranking second most successful week for crypto hackers in terms of stolen money.

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