Since September 2, Compound’s governance has scrutinized the manipulation risk involved with less-liquid assets.
Compound and Mango markets
On October 11, Mango Markets, a Solana-based trading platform was exploited for nearly $117 million. The exploiter used a combination of efforts to drive the price of MNGO (Mango Market’s native Token) higher.
Later, using the over-valued MNGO, the exploiter took out a $117 million loan, wiping Mango’s treasury.
The exploiter then drained the assets, which included Solana, USDC, USDT, BTC, and MNGO.
Shortly after the exploit, the MNGO price hit rock bottom before the exploiter staged an artificial pump.
The exploit was made possible because of the illiquid nature of the MNGO token.
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