Edel Finance@edeldotfinance
An Update from the Edel Team
Earlier today, Edel identified and contained an exploit affecting Edel Lending.
The exploit involved manipulation of the wrapped xStocks exchange rate between wGOOGLx and GOOGLx, causing wGOOGLx collateral to be valued at approximately 78x its correct value. The attacker used that inflated collateral value to borrow from the protocol, creating approximately $403k in protocol bad debt.
Immediately after detection, the Edel team paused all V1 contracts. Edel V1 remains paused, and users should not interact with the V1 deployment while protocol activity is suspended.
The team has preserved the relevant protocol records and is using them to determine affected balances for restoration.
No depositor will bear any loss from this incident. The Edel team will absorb the bad debt and restore affected depositor balances 1:1.
Edel V2 is being deployed with a redesigned oracle architecture intended to prevent this class of exchange-rate manipulation. Once deployment and balance restoration are complete, restored balances will be available directly in the Edel application. We will share timing as soon as it is finalized.
We have traced the attacker’s transactions and are coordinating with exchanges, ecosystem partners, and other relevant stakeholders. In parallel, we have extended a formal whitehat settlement offer to the responsible party, providing a defined window to return the remaining funds in exchange for an authorized security bounty.
A full technical post-mortem will follow with the exploit path, root cause, and the changes introduced in Edel V2.
This incident also reinforces the importance of EIP-01, which will introduce governance over protocol risk parameters, supported collateral, and future market configuration while preserving the team’s ability to respond immediately to security-critical events.
Our immediate priorities are containment, user restoration, and transparent follow-up.
We will continue updating users until affected balances have been restored in full.
The Edel Team
