24/7 Cryptocurrency News

Levana Suffers Major Hack, Assures User Positions Remain Safe

Levana protocol on Osmosis blockchain hit by $1.1M exploit due to congestion attack and oracle flaw, plans security updates and compensation.
Levana Suffers Major Hack, Assures User Positions Remain Safe

The Levana perpetual swap protocol on the Osmosis blockchain underwent a severe exploit. Over 13 days, an unauthorized party drained more than $1.1 million from Levana’s liquidity pools. This incident, marking a significant setback for the protocol, resulted in losing 10% of its liquidity.

Advertisement

Root Causes Identified

Investigations into the incident revealed a multifaceted cause. Attackers exploited a congestion attack on the Osmosis blockchain, severely limiting user interactions with the market. This situation worsened due to a flaw in the Osmosis fee market code. During periods of high traffic, the gas prices set needed to be increased for transactions or bot maintenance. 

Additionally, the exploit capitalized on “price staleness” in Levana’s integration with the Pyth oracle. This combination of factors enabled the attackers to manipulate market prices and drain the liquidity pools. Despite these challenges, Levana’s team emphasized that the Pyth oracle functioned as expected, pointing out that the vulnerability lay in their system integration rather than the oracle itself.

Advertisement

Levana Immediate Measures and Future Plans

Levana has taken prompt action to address the breach. They are developing a comprehensive solution scheduled for deployment in an upcoming update across all chains hosting Levana, including Osmosis, Sei, and Injective. This update aims to fortify the protocol against similar vulnerabilities in the future.

In the interim, Levana has temporarily halted new position openings and modifications to current ones. They assure users that the exploit has not impacted trade positions and profits. The team focuses on safeguarding user assets and restoring full functionality as swiftly as possible.

Advertisement

Compensation Strategy for Affected Parties

In response to the financial losses incurred by liquidity providers, Levana is planning a twofold compensation approach. Affected parties will receive an airdrop and the distribution of collected protocol fees during the attack. This move demonstrates Levana’s commitment to its community and resolve to manage the exploit’s aftermath responsibly.

The Levana exploit on the Osmosis blockchain is a stark reminder of the ongoing security challenges in the DeFi space. As Levana navigates through this crisis, its response and measures for restitution highlight the importance of robust security protocols and swift, transparent action in the face of digital asset vulnerabilities.

Read Also: Tether In Crosshair Amid China’s Crackdown On Illegal Forex Trading

Advertisement

Share
Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • Bitcoin News

99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction

Bitcoin (BTC) is in profit on almost all of its supply, leading to discussion by…

October 5, 2025
  • 24/7 Cryptocurrency News

Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement

Pro-crypto Mike Selig is reportedly the frontrunner to become the next chair of the U.S.…

October 4, 2025
  • 24/7 Cryptocurrency News

‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications

Nate Geraci, president of Novadius Wealth Management, has predicted that several crypto ETF filings could…

October 4, 2025
  • Bitcoin News

Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model

Bitcoin-backed stocks of Strategy can now be accessed on Robinhood. This represents a significant move…

October 4, 2025
  • Bitcoin News

Bitcoin ETFs See 2025 Record Weekly Inflows of $3.2B as BTC Eyes New ATH

The Bitcoin ETFs have seen a huge turnaround this week, recording their largest weekly inflows…

October 4, 2025
  • 24/7 Cryptocurrency News

Expert Predicts SHIB Rally as Shiba Inu Restores Shibarium After $4M Hack Shutdown

Shiba Inu’s Layer 2 network, Shibarium, has returned online following a $4 million exploit that…

October 4, 2025