Edel has paused its V1 lending platform after an attacker exploited a pricing flaw that left the protocol with about $403,000 in bad debt. The team said users will not lose any deposits and promised to restore all affected balances in full.
According to Edel, the attacker manipulated the exchange rate between wrapped xStocks assets, making wrapped Google stock tokens (wGOOGLx) appear to be worth about 78 times more than their real value. The inflated collateral was then used to borrow assets from the protocol, creating losses once the loans could no longer be fully backed.
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…
— Edel Finance (@edeldotfinance) July 1, 2026
After detecting the attack, Edel immediately paused all V1 contracts and warned users not to interact with the platform while it remained offline. The team said it has preserved all relevant records to identify affected accounts and will cover the losses itself rather than passing them on to depositors.
New version aims to prevent the same attack
Edel said it is preparing to launch V2 with a new pricing system designed to stop this type of manipulation. Once the upgrade is complete, users will be able to access their restored balances through the Edel app.
Security firm SlowMist said the attacker used a flash loan and a direct asset donation to manipulate the ERC4626 vault’s price feed. According to its analysis, the attack inflated the value of the collateral, allowing the attacker to borrow about $350,000 from the protocol before draining other reserves. SlowMist said the price source lacked safeguards such as rate limits and donation protection, making the exploit possible.
The team also said it has traced the attacker’s transactions and is working with exchanges and other partners. It has offered the attacker a white-hat settlement, giving them a chance to return the remaining funds in exchange for a security reward. A full report explaining how the exploit happened will be released after the recovery is complete.
What happens when the price feed gets the value wrong?
Many DeFi hacks happen because attackers find a way to trick the system into believing an asset is worth far more than it really is. Once that happens, they can borrow more funds than their collateral should allow and leave the protocol with losses.
That risk is becoming more important as lending platforms begin accepting tokenized stocks and other real-world assets. Unlike Bitcoin or Ether, these assets depend on price feeds that connect blockchain tokens to prices outside the blockchain. If those prices are wrong, even for a short time, the damage can be significant.
The Edel attack is another reminder that protecting user funds is no longer only about securing smart contracts. Making sure assets are priced correctly has become just as important as protecting the code itself. Meanwhile, the VerusCoin Ethereum bridge was exploited too, resulting in the loss of approximately $11.58 million in digital assets, including ETH, tBTC v2, and USDC.
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