An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

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Chainlink reporting GOOG at ~$357 did not save Edel because the borrow engine trusted the wGOOGLx/GOOGLx share rate as collateral truth. This is the ERC-4626/cToken failure mode dressed up as tokenized equities: once a wrapper exchange rate can be pushed to 78x, every LTV, liquidation threshold and oracle check downstream is cleanly wrong. Edel's own follow-up points to EIP-01 adding governance over supported collateral and risk parameters after V1 was paused on July 1, 2026.

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An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

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AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

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Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

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More on Bad Debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

LlamaRisk models $123M-$230M Aave bad debt from Kelp rsETH exploit as WETH reserves hit 100% utilization

rsETH Incident Report by LlamaRisk Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

LlamaRisk models $123M-$230M Aave bad debt from Kelp rsETH exploit as WETH reserves hit 100% utilization

rsETH Incident Report by LlamaRisk Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

An attacker inflated tokenized Google stock collateral by 7,700% on Edel Finance, borrowing against phantom value and leaving the protocol with $403,000 in bad debt

Explore the topic

More on Bad Debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

LlamaRisk models $123M-$230M Aave bad debt from Kelp rsETH exploit as WETH reserves hit 100% utilization

rsETH Incident Report by LlamaRisk Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

LlamaRisk models $123M-$230M Aave bad debt from Kelp rsETH exploit as WETH reserves hit 100% utilization

rsETH Incident Report by LlamaRisk Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

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More on Bad Debt

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

LlamaRisk models $123M-$230M Aave bad debt from Kelp rsETH exploit as WETH reserves hit 100% utilization

rsETH Incident Report by LlamaRisk Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.

AlphaFi winds down on Sui after bad debt; Sui Foundation covers losses, no user funds affected. Community members shared disappointment but pointed to alternatives like Scallop.

Morpho Midnight's fixed-rate credit markets shift risk to lenders through socialized bad debt, making LLTV, maturity and liquidation incentives critical parameters

Researcher finds fluid treasury covered Resolv bad debt using internal credit line, not funds earmarked for users

MantleCore drafts MIP-34 offering Aave DAO 30k ETH at LIDO+1% APR to cover rsETH exploit bad debt, collects 130k AAVE in voting power

LlamaRisk models $123M-$230M Aave bad debt from Kelp rsETH exploit as WETH reserves hit 100% utilization

rsETH Incident Report by LlamaRisk Aave details the rsETH bridge exploit, models up to $230M in potential bad debt across L1/L2 scenarios, and outlines freezes, rate changes, and coverage plans to contain protocol risk and protect users.