DeFi Dilemma: Nostra’s Price Feed Fiasco Leaves Borrowers in the Lurch!
Ah, dear readers, gather ’round and lend me your ears! It appears that our friends at Nostra, a lending protocol on the illustrious Starknet, have decided to hit the pause button on borrowing for two rather unfortunate liquid staking tokens. The reason? A “critical issue” with their price feeds, which, if we’re being honest, sounds like something one might hear in a particularly dull lecture on the finer points of hedge fund management.
On the fine day of March 24, a day that shall live in infamy, Nostra discovered that their price feed had inflated the reported prices of xSTRK and sSTRK — two liquid staking derivatives of Starknet’s native STRK token — to a staggering three times their actual value. One can only imagine the chaos that ensued, like a flock of pigeons startled by a sudden clap of thunder! 🐦💨
According to Nostra, “[s]uch an inflated price feed could have caused unnecessary liquidations of otherwise safe positions, resulting in users with healthy positions getting liquidated.” Ah, the irony! It seems that in the world of DeFi, safety is but a fleeting illusion, much like a well-placed soufflé that collapses at the slightest whisper.
In a move that can only be described as prudent, Nostra has disabled any further borrowing against xSTRK and sSTRK collateral deposits. One must applaud their decisiveness, although it does leave one wondering if they might have been better off consulting a crystal ball instead of relying on faulty price feeds.
Moreover, Nostra has gallantly recommended that users with existing xSTRK and sSTRK deposits withdraw their collateral immediately. I daresay, it’s as if they are shouting, “Abandon ship!” while the crew is still busy polishing the brass! ⚓️
“Since we don’t have a secondary (fallback) oracle to support these assets, as none are available, we are unable to fully prevent similar events from occurring in the future,” Nostra lamented. A classic case of being caught between a rock and a hard place, if ever there was one!
“Our priority has always been and continues to be to keep existing user funds safe, and with no fallback oracle, the risks outweigh the benefits,” they added, presumably while clutching their pearls in horror.
Starknet DeFi Protocol
As for Starknet itself, it is a layer-2 scaling chain of Ethereum, secured by the marvels of zero-knowledge (ZK) proofs. It launched its mainnet in late 2021, according to the ever-reliable Messari. With a total value locked (TVL) of approximately $575 million, it’s safe to say Starknet is no small fry in the grand game of DeFi.
Lending protocol Nostra, meanwhile, is among the larger DeFi projects operating on this chain, boasting a TVL of approximately $55 million, which is certainly no pocket change! On Nostra, users post collateral in one token to borrow in another, much like a game of musical chairs, but with far more at stake.
Starknet designed STRK to be staked in exchange for a portion of the network’s fee revenues, a clever little scheme if I do say so myself. Meanwhile, xSTRK and sSTRK are liquid staking tokens issued by the independent DeFi protocols Endur and Nimbura, respectively, who are likely shaking their heads in disbelief at the current turn of events.
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2025-03-24 22:30