Chainlink Oracle Malfunction Causes $500K+ DeFi Liquidations

Posted: 2025-05-29 21:40:59 UTC

@Omer Goldbergomeragoldberg

#Liquidations

#Avalanche

#Chainlink

#DeFi

#RWA

#Oracles

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This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.

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This article contains some claims that remain unverified. While much of the content may be accurate, exercise care when relying on this information.

Read With Caution

Verification Details

Status

In Progress

VerifiedPartially VerifiedFalse

Last Updated

2025-05-30 03:54:47 UTC

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TL;DR;

A Chainlink oracle malfunction led to a price spike in deUSD, causing over $500K in liquidations on the Avalanche Euler market due to leveraged positions. The issue was triggered by a large Curve swap on Ethereum affecting the deUSD price feed.

Key Impact Areas

DeFi

Oracles

Chainlink

Liquidations

Risk Management

Challenges

Fragmented liquidity

Synthetic yield products

Dynamic leverage loops

Multi-chain risk surface

Oracle vulnerabilities

Chainlink Oracle Malfunction Causes $500K+ DeFi Liquidations

Read With Caution

Full Thread

Read With Caution

Verification Details

TL;DR;

Key Impact Areas

Challenges

Claims

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