Tokenized Google stock inflated 7,700% in rare DeFi lending exploit
SummaryEdel Finance halted its version-one lending protocol after an attacker manipulated the wrapping mechanism for a tokenized Google stock, inflating collateral values by about 78 times and creating roughly $403,000 in bad debt.The exploit did not stem from faulty price oracles —Chainlink feeds correctly reported Alphabets share price — but from how GOOGLx converted to and from its wrapped form wGOOGLx, allowing the attacker to borrow real assets against mispriced collateral.Edel said it will absorb all losses so depositors are made whole, is rolling out a redesigned version-two system to prevent similar price-manipulation attacks, and has offered the attacker a white-hat settlement while coordinating with exchanges. Tokenized equities trading platform Edel Finance paused its lending protocol on Tuesday after an attacker exploited how it priced a tokenized stock, borrowing against collateral inflated to roughly 78 times its true value and leaving about $403,000 in bad debt, the team said. An Update from the Edel Team Earlier today, Edel identified and contained an exploit affecting Edel Lending. The exploit involved manipulation of the wrapped xStocks exchange rate between wGOOGLx and GOOGLx, causing wGOOGLx collateral to be valued at approximately 78x its… The target was a tokenized version of Alphabets Google stock. Edel Lending accepted wGOOGLx, a