Onyx Protocol Money Markets Post Mortem
Onyx Protocol was subject to a security incident where a nefarious actor exploited the protocol to drain VUSD from the protocol.
This exploit can be identified and understood from a vulnerability in the NFT Liquidation contract. A full explanation of the exploit can be found here: x.com (as the primary issue wasn’t an empty market but the NFTLiquidation Contract)
XCN Staking and XCN Farming were, once again, unaffected. The DAO will decide the next steps of the protocols with the following proposal which will be voted on next:
OIP-46: Relaunch Onyx Core
This OIP proposes Onyx relaunch its open source permissioned financial network, Onyx Core as its primary product alongside XCN Staking securing the governance of Onyx Core and for Onyx Stakers. Onyx Protocol will run as a closed-ended lending protocol on Onyx Core where users can wrap their NFT and RWA and borrow against them through a global network as well as wrap crypto assets from multiple chains.
This proposal will shut down the Ethereum based lending market and reimburse all affected users in full at a 1:1 payment of the assets they supplied.
OIP-46 will be launched soon onchain for XCN holders to vote on.
Additionally, Onyx Protocol will hold an AMA next week on a date to be announced. The AMA will include a giveaway.