Ajna Protocol Loses $775K in Internal Liquidation Attack

Ajna Protocol, a decentralized lending platform without price oracles, suffered a $775,000 loss in ETH due to an exploit that manipulated its internal liquidation accounting. The attackers targeted multiple liquidity pools, including syrupUSDC and WETH/USDC, raising concerns about security vulnerabilities in DeFi lending mechanisms. The exploit occurred despite warnings from a security firm, Defimon, which detected the attack over an hour before it began. Ajna's total value locked (TVL) was reported at $206,000, indicating that the losses exceeded its available liquidity. The incident highlights the risks associated with operating without external price feeds, as the attacker exploited the platform's unique operational philosophy. The protocol's design, which eliminates oracles to reduce attack surfaces, was ultimately compromised by internal accounting manipulation. The current status of the protocol remains uncertain as it assesses the damage and potential recovery.

Key Points: • Ajna Protocol lost $775,000 due to an internal liquidation accounting exploit. • The attack affected multiple liquidity pools, exceeding the platform's total value locked. • Warnings from a security firm went unheeded before the exploit occurred.