{"id":18854,"date":"2025-03-24T19:32:24","date_gmt":"2025-03-24T19:32:24","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=18854"},"modified":"2025-03-24T19:32:24","modified_gmt":"2025-03-24T19:32:24","slug":"defi-lender-nostra-pauses-borrowing-after-price-feed-error","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=18854","title":{"rendered":"DeFi lender Nostra pauses borrowing after price feed error"},"content":{"rendered":"
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\"DeFi<\/p>\n

Nostra, a lending protocol on Starknet, has paused borrowing for two liquid staking tokens after identifying a \u201ccritical issue\u201d with its price feeds, the decentralized finance (DeFi) protocol said.\u00a0<\/p>\n

On March 24, errors in Nostra\u2019s price feed inflated the reported prices of xSTRK and sSTRK \u2014 two liquid staking derivatives of Starknet\u2019s native STRK token \u2014 to approximately three times the tokens\u2019 actual value, Nostra said<\/a> in a post on the X platform.<\/p>\n

According to Nostra, \u201c[s]uch an inflated price feed could have caused unnecessary liquidations of otherwise safe positions, resulting in users with healthy positions getting liquidated.\u201d\u00a0<\/p>\n

In response, the DeFi protocol has disabled any further borrowing against xSTRK and sSTRK collateral deposits, Nostra said.\u00a0<\/p>\n

Nostra has also recommended that users with existing xSTRK and sSTRK deposits withdraw the collateral immediately.\u00a0<\/p>\n

\u201cSince we don\u2019t have a secondary (fallback) oracle to support these assets, as none are available, we are unable to fully prevent similar events from occurring in the future,\u201d Nostra added.<\/p>\n

\u201cOur priority has always been and continues to be to keep existing user funds safe and with no fallback oracle, the risks outweigh the benefits,\u201d it said.\u00a0<\/p>\n

\"DeFi
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Nostra\u2019s collateral token options. Source: Nostra<\/em><\/p>\n<\/figcaption><\/figure>\n

Related: <\/strong><\/em>Starknet to settle on Bitcoin and Ethereum to unify the chains<\/strong><\/em><\/a><\/p>\n

Starknet DeFi protocol<\/h2>\n

Starknet is a layer-2 scaling chain of Ethereum secured using zero-knowledge (ZK) proofs.\u00a0It launched its mainnet in late 2021, according<\/a> to Messari.<\/p>\n

It has a total value locked (TVL) of approximately $575 million, according to data<\/a> from L2Beat.\u00a0<\/p>\n

Lending protocol Nostra is among the larger DeFi projects operating on the chain. It has a TVL of approximately $55 million, according to its website.\u00a0<\/p>\n

On Nostra, users post collateral in one token to borrow in another token. The DeFi protocol\u2019s most popular collateral tokens are Ether, STRK, and stablecoins USDC (USDC<\/a>) and Tether (USDT<\/a>).\u00a0<\/p>\n

Starknet designed STRK to be staked in exchange for a portion of the network\u2019s fee revenues, according<\/a> to its documentation.<\/p>\n

xSTRK and sSTRK are liquid staking tokens issued by independent DeFi protocols Endur and Nimbura, respectively.\u00a0<\/p>\n

Magazine:<\/strong><\/em> <\/em>What are native rollups? Full guide to Ethereum\u2019s latest innovation<\/strong><\/em><\/a><\/p>\n