Omer Goldberg

$500K gone in 180 seconds.

Chainlink just proved oracles are one of the weakest links in DeFi.

Here’s what happened: 

1/ Earlier today, Chainlink’s deUSD price feed spiked to $1.028—just enough to tip the Avalanche Euler market over the edge. 

Within minutes, $500K+ of leveraged positions were wiped out. 

2/ deUSD is Elixir’s RWA-backed stablecoin, with $185M total supply and $42.7M live on Avalanche.

It’s a popular collateral asset due to its high yield profile.

Users were looping it 10x for theoretical returns north of 100%. 

LLTV sat at 92.5%. Razor-thin margins. 

3/ At block 62918673, the Chainlink oracle pushed deUSD to $1.0283.

At block 62918676, first liquidation.

At block 62918677: $532K wiped.

https://snowscan.xyz/tx/0xe40c80e0ec5af4041d84a7ba0654a39bb2615ddf82d1b3824cef679ff78424bd#eventlog 

4/ Why?

30 mins earlier, a large Curve swap (by jaredfromsubway) on Ethereum—~210K USDT for 202K deUSD—moved price just enough on thin liquidity. 

It looks like Chainlink’s oracle picked it up and pushed that price cross-chain, including Avalanche. 

5/ Following the Chainlink oracle malfunction, Re7 and K3 updated the oracle configuration and hardcoded the value to 1.

Replacing Chainlink to a fixed rate mitigates the current exposure, by minimizing artificial deviation of debt asset prices.

https://snowtrace.io/tx/0xe9d9880c6cce5d925280ecfc8e9d2763e5909d5eae02b5400970e31248c0e9b1?chainid=43114 

6/ Most people think the problem of oracles is solved.

It's not.

Not when markets are fragmented, leverage is dynamic, and liquidity moves in real time.

7/ The future of tokenized assets, RWAs, and AI agents hinges on feeds that understand the full context.

- fragmented liquidity
- synthetic yield products
- dynamic leverage loops
- multi-chain risk surface
- and more

8/ At @chaos_labs, we believe we’re still in v0 when it comes to oracles.

The next version isn’t just more data - it’s intelligent feeds.

If your oracle doesn’t see the whole picture, it’s not a source of truth. 

It’s a threat.