Rodeo Finance Exploit on Arbitrum Leads to $888,000 Loss

Summary # On July 11, 2023, Rodeo Finance on Arbitrum was breached, losing around 472 ETH ($888,000) due to an attacker exploiting the TWAP Oracle. By manipulating the oracle’s price calculation, through a “sandwich” attack, they inflated asset prices. This allowed them to mislead the protocol, borrow against the inflated prices from the USDC Pool, and conduct swaps to profit from the manipulated price discrepancies, effectively bypassing Rodeo’s security checks. ...