The Starknet-based lending protocol Nostra suspended its money market operations on Thursday following a price oracle manipulation. An attacker exploited the system to borrow approximately $3.5 million using NSTR tokens as collateral. The protocol has halted all lending, borrowing, withdrawals, and liquidations while the team conducts an audit of the affected assets.
Data from security firm PeckShield indicates that the attacker moved $1.92 million to the Ethereum network, including 234.57 ETH and 1.3 million DAI. The total value locked in the Nostra protocol dropped from $4 million on September 16 to roughly $710,632. The market value of the NSTR token itself is currently estimated at $546,751.
This incident marks the second oracle-related failure on the Starknet network within two weeks. On September 4, a price feed error at the protocol Vesu led to 47 liquidations across 42 wallets. Unlike the Vesu case, which stemmed from a publishing pipeline fault, the Nostra incident involved the deliberate manipulation of collateral pricing.
The broader crypto sector has faced significant losses in September, exceeding $326 million prior to the Nostra exploit. Most of this total is attributed to the Liquid Network incident, which accounted for $320 million in losses. Security firm PeckShield reported 50 separate hacking incidents during August, totaling $136.3 million in stolen funds.
