{"investigation":{"slug":"pando-rings","entity_name":"Pando Rings","trust_score":18,"severity_base":null,"score_modifier":0,"confidence":1,"status":"published","content_type":"investigation","summary":"Pando Rings is an algorithmic lending and borrowing protocol built on the Mixin Network by Fox One, modeled on Compound Finance. On November 5, 2022, an attacker exploited a price oracle vulnerability tied to the sBTC-WBTC LP token on 4swap to drain approximately $21.9 million in ETH, BTC, and EOS from the protocol; an additional ~$50 million remained frozen in the attacker's wallets. The protocol subsequently suffered further losses in the September 2023 Mixin Network infrastructure breach, and as of late 2023 remained in a limited operational state with interest accrual and liquidations suspended.","sections":[{"content":"Pando Rings is an algorithmic, autonomous interest rate protocol built on the Mixin Network by the development organization Fox One. It is modeled on the Compound Finance protocol and was originally referred to internally as 'Compound on Mixin.' Users may deposit crypto assets to earn yield or borrow against collateral. The protocol operates using Mixin Trusted Group (MTG) technology, a multi-signature custodian consensus mechanism that serves as an alternative to smart contracts on the Mixin Network. Interest compounds approximately every 15 seconds with no gas fees. Pando Rings forms part of a broader suite of DeFi products under the Pando Proto umbrella, which also includes 4swap (an AMM DEX), Pando Leaf (a stablecoin minting protocol), and Pando Wave (asset management). Fox One commissioned a security audit from Least Authority in October 2021, which reviewed both Pando Rings and Pando Leaf prior to the exploit. The Pando ecosystem was launched with backing from BigONE, Exin, FOX, Poolin, and the Mixin team.","heading":"Background","sources":[{"url":"https://pando.im/rings/","name":"","type":"other","credibility":3},{"url":"https://github.com/fox-one/pando","name":"","type":"other","credibility":3},{"url":"https://leastauthority.com/blog/audits/audit-of-compound-pando-for-fox-one/","name":"","type":"other","credibility":3},{"url":"https://docs.pando.im/docs/security/mtg/","name":"","type":"other","credibility":3}],"severity":"medium"},{"content":"On November 5, 2022, an attacker exploited a vulnerability in the Pando Rings price oracle by manipulating the price of sBTC-WBTC, a liquidity provider token representing the BTC-WBTC trading pair on 4swap, Pando's integrated DEX. By artificially inflating the oracle-reported value of this LP token, the attacker was able to use it as over-valued collateral to borrow far more from the protocol than the underlying assets justified. The attacker operated from two Mixin wallet IDs (f059c0ee-cde3-3db9-9079-1aff956172c0 and d3a935af-ccc4-3cca-98a0-b1b7a9cc53ca) and routed stolen funds to external addresses including ETH address 0xd3f04cE2d37b182432e2f804F9913a02071CEa54, EOS account entofkdupows, and BTC address bc1qjnsx0sdxksh4w2azwu5ngr8sax46vcu52ljfcx. The total attempted theft was approximately $70 million. Before Pando and Mixin Network could intervene, $21,877,098.03 in ETH, BTC, and EOS had been transferred out. The attacker converted portions of the proceeds into non-freezable assets such as DAI and WETH and attempted to bridge funds cross-chain using RenBridge. Pando halted all services — including Rings, 4swap, Leaf, and Lake — and engaged blockchain security firm SlowMist for fund tracing. Law enforcement was also contacted. The TVL of Pando Rings fell approximately 44%, dropping from $88.57 million on November 5 to $49.72 million on November 6, 2022.","heading":"The Exploit","sources":[{"url":"https://pando.im/news/2022/2022-11-06-alert-to-pando-community-hack-of-pando-rings/","name":"","type":"other","credibility":3},{"url":"https://immunebytes.com/blog/pando-rings-hack-nov-5-2022-detailed-analysis/","name":"","type":"other","credibility":3},{"url":"https://www.web3isgoinggreat.com/?id=pando-exploited-for-20-million","name":"","type":"other","credibility":3},{"url":"https://x.com/pando_im/status/1589113232899575809","name":"","type":"other","credibility":3}],"severity":"medium"},{"content":"The attacker's activity was traced across multiple chains and wallet addresses. Two Mixin-native wallet IDs were identified as the originating accounts: f059c0ee-cde3-3db9-9079-1aff956172c0 and d3a935af-ccc4-3cca-98a0-b1b7a9cc53ca. External ETH addresses linked to the attacker include 0x204d4b8cfbc37382689fc235bba5a349accdb95e and 0xe290894ef1127f525f0d7d8e309b03946bd2332c. The Pando team publicly posted a refund address (ETH: 0xfB42824eda8b29873839e6d89FEc2857c1a4E2dF) in an attempt to negotiate the return of funds. Approximately $50 million remained in the attacker's Mixin-side wallets and was frozen through cooperation between Pando and Mixin Network. EOS funds totaling 2,022,662.9979 EOS (approximately $2,362,761.24 at the time) were also frozen. The attacker attempted to obscure the trail by swapping assets into DAI and WETH and using RenBridge as a cross-chain bridge to convert to Bitcoin. SlowMist was engaged to perform on-chain tracing; however, no public SlowMist report specific to this incident has been identified. As of late 2025, no recovery of the $21.9 million that left the protocol has been publicly confirmed.","heading":"On-Chain Evidence","sources":[{"url":"https://pando.im/news/2022/2022-11-06-alert-to-pando-community-hack-of-pando-rings/","name":"","type":"other","credibility":3},{"url":"https://immunebytes.com/blog/pando-rings-hack-nov-5-2022-detailed-analysis/","name":"","type":"other","credibility":3},{"url":"https://x.com/pando_im/status/1589113232899575809","name":"","type":"other","credibility":3}],"severity":"medium"},{"content":"Pando Rings was developed and is maintained by Fox One, a Hong Kong-based organization that builds applications and tooling for the Mixin Network. The Pando GitHub repository is hosted under the fox-one GitHub organization. The Pando ecosystem was launched on August 4, 2021 with participation from BigONE, Exin, FOX, Poolin, and the core Mixin team, all of whom serve or have served as nodes in the Mixin Trusted Group (MTG) multi-signature governance mechanism. Individual team members' identities are not prominently disclosed in public-facing materials. Fox One engaged Least Authority, an established cryptography security firm, to audit Pando Rings (then called 'Compound on Mixin') and Pando Leaf in October 2021, approximately one year before the exploit. No named security auditor or lead developer for Pando Rings has been publicly identified. The absence of individual accountability disclosures is notable given the scale of user funds managed by the protocol.","heading":"Team","sources":[{"url":"https://github.com/fox-one/pando","name":"","type":"other","credibility":3},{"url":"https://leastauthority.com/blog/audits/audit-of-compound-pando-for-fox-one/","name":"","type":"other","credibility":3},{"url":"https://docs.pando.im/docs/security/mtg/","name":"","type":"other","credibility":3}],"severity":"medium"},{"content":"Following the November 2022 exploit, Pando committed to full reimbursement of affected users' assets. Approximately $50 million in funds that remained in the attacker's Mixin-side wallets was frozen through cooperation with Mixin Network, and approximately $2.36 million in EOS was recovered. However, the $21.9 million that was successfully transferred out has not been publicly confirmed as recovered. The protocol's ability to fulfil its full reimbursement pledge was further complicated by a separate, unrelated security incident on September 23, 2023, when the Mixin Network's Google Cloud infrastructure was compromised, resulting in a system-wide $200 million loss across the network. This second incident caused additional losses for Pando Rings users: USDT (ERC20) balances fell approximately 90%, ETH approximately 70%, BTC approximately 10%, and BOX approximately 7.3%. Pando resumed limited services in late 2023: Pando Swap relaunched liquidity management on October 17, 2023, and Pando Rings and Leaf resumed collateral redemption and debt repayment on October 24, 2023. However, interest accrual and liquidations remained paused as of that date, and full service restoration was stated to depend on the launch of a new Mixin Mainnet. The current TVL of Pando Rings stands at approximately $6.88 million as of early 2024, down substantially from its pre-hack level. No formal, publicly documented compensation distribution to affected users has been confirmed for either the 2022 or 2023 incidents.","heading":"Recovery","sources":[{"url":"https://pando.im/news/2022/2022-11-06-alert-to-pando-community-hack-of-pando-rings/","name":"","type":"other","credibility":3},{"url":"https://pando.im/news/2023/2023-10-24-rings-and-leaf-resumes-collateral-redemption-and-withdrawal/","name":"","type":"other","credibility":3},{"url":"https://pando.im/news/2023/2023-12-18-further-service-restoration-of-pando-leaf/","name":"","type":"other","credibility":3},{"url":"https://www.halborn.com/blog/post/explained-the-mixin-network-hack-september-2023","name":"","type":"other","credibility":3},{"url":"https://defillama.com/protocol/pando-rings","name":"","type":"other","credibility":3}],"severity":"medium"},{"content":"Pando Rings presents several compounding risk factors. First, the protocol suffered a direct exploit in November 2022 that drained approximately $21.9 million via an oracle price manipulation attack. The root vulnerability — using an AMM LP token (sBTC-WBTC) as a price oracle input without adequate manipulation resistance — represents a well-documented class of DeFi vulnerability that the October 2021 Least Authority audit did not prevent. Second, the protocol's underlying infrastructure (Mixin Network) was separately and independently compromised in September 2023, resulting in additional multi-million dollar losses for Pando users, demonstrating that protocol-level risks and infrastructure-level risks can compound. Third, the MTG multi-signature model, while adding some governance checks, depends on a small set of known node operators (BigONE, Exin, FOX, Poolin, Mixin team) and is not fully permissionless. Fourth, as of the most recent available data, the protocol remains in a degraded operational state with key functions (interest accrual, liquidations) still paused. Fifth, the team's public commitment to 'full reimbursement' following the 2022 exploit has not been transparently documented or verified as executed. The current TVL of approximately $6.88 million represents a fraction of the pre-exploit level, indicating significant user attrition. Any new user depositing into Pando Rings should consider: the history of two separate major security events within 12 months, the limited operational state, the lack of transparent compensation reporting, and the protocol's dependence on a single underlying network (Mixin Network) with its own infrastructure vulnerabilities.","heading":"Risk Assessment","sources":[{"url":"https://pando.im/news/2022/2022-11-06-alert-to-pando-community-hack-of-pando-rings/","name":"","type":"other","credibility":3},{"url":"https://www.halborn.com/blog/post/explained-the-mixin-network-hack-september-2023","name":"","type":"other","credibility":3},{"url":"https://defillama.com/protocol/pando-rings","name":"","type":"other","credibility":3},{"url":"https://immunebytes.com/blog/pando-rings-hack-nov-5-2022-detailed-analysis/","name":"","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2021-08-04","event":"Pando Seed (PS) launched with backing from BigONE, Exin, FOX, Poolin, and the Mixin team, formalizing the multi-stakeholder MTG governance structure.","source":""},{"date":"2021-10-20","event":"Least Authority completes security audit of Pando Rings (then called Compound on Mixin) and Pando Leaf on behalf of Fox One.","source":""},{"date":"2022-11-05","event":"Attacker exploits the Pando Rings price oracle by manipulating the sBTC-WBTC LP token price on 4swap. Approximately $70 million in theft attempted; $21,877,098.03 in ETH, BTC, and EOS successfully transferred out before intervention. TVL drops ~44%.","source":""},{"date":"2022-11-06","event":"Pando publicly discloses the hack, halts all protocol services, engages SlowMist for tracing, contacts law enforcement, and pledges full reimbursement to affected users. Approximately $50 million in funds frozen in attacker wallets with Mixin Network assistance. ~$2.36 million in EOS frozen.","source":""},{"date":"2022-11-06","event":"Pando posts public ETH refund address (0xfB42824eda8b29873839e6d89FEc2857c1a4E2dF) seeking negotiated return of stolen funds.","source":""},{"date":"2023-09-23","event":"Mixin Network suffers a separate $200 million infrastructure breach via its Google Cloud database. Pando users suffer additional losses: USDT (ERC20) down ~90%, ETH down ~70%, BTC down ~10%, BOX down ~7.3%.","source":""},{"date":"2023-10-17","event":"Pando Swap (4swap) resumes liquidity management functions.","source":""},{"date":"2023-10-24","event":"Pando Rings and Pando Leaf resume limited collateral redemption and debt repayment. Interest accrual and liquidations remain paused.","source":""},{"date":"2023-12-18","event":"Pando announces further service restoration for Pando Leaf on the legacy Mixin Network. Full restoration contingent on new Mixin Mainnet launch.","source":""}],"sources_used":[{"url":"https://pando.im/rings/","name":"","type":"other","archive_url":"http://web.archive.org/web/20260829140948/https://pando.im/rings/","credibility":3,"archive_timestamp":"2026-08-29T14:09:48+00:00"},{"url":"https://github.com/fox-one/pando","name":"","type":"other","archive_url":"https://web.archive.org/web/20260830001034/https://github.com/fox-one/pando","credibility":3,"archive_timestamp":"2026-08-30T00:10:34+00:00"},{"url":"https://leastauthority.com/blog/audits/audit-of-compound-pando-for-fox-one/","name":"","type":"other","archive_url":"https://web.archive.org/web/20260830043126/https://leastauthority.com/blog/audit-of-compound-pando-for-fox-one/","credibility":3,"archive_timestamp":"2026-08-30T04:31:26+00:00"},{"url":"https://docs.pando.im/docs/security/mtg/","name":"","type":"other","archive_url":null,"credibility":3,"archive_error":"error:not-found","archive_status":"unarchivable","archive_timestamp":null},{"url":"https://pando.im/news/2022/2022-11-06-alert-to-pando-community-hack-of-pando-rings/","name":"","type":"other","archive_url":"http://web.archive.org/web/20260720153149/https://pando.im/news/2022/2022-11-06-alert-to-pando-community-hack-of-pando-rings/","credibility":3,"archive_timestamp":"2026-07-20T15:31:49+00:00"},{"url":"https://immunebytes.com/blog/pando-rings-hack-nov-5-2022-detailed-analysis/","name":"","type":"other","archive_url":"http://web.archive.org/web/20251112202328/https://immunebytes.com/blog/pando-rings-hack-nov-5-2022-detailed-analysis/","credibility":3,"archive_timestamp":"2025-11-12T20:23:28+00:00"},{"url":"https://www.web3isgoinggreat.com/?id=pando-exploited-for-20-million","name":"","type":"other","archive_url":"http://web.archive.org/web/20260414212411/https://www.web3isgoinggreat.com/?id=pando-exploited-for-20-million","credibility":3,"archive_timestamp":"2026-04-14T21:24:11+00:00"},{"url":"https://x.com/pando_im/status/1589113232899575809","name":"","type":"other","archive_url":null,"credibility":3,"archive_timestamp":null},{"url":"https://pando.im/news/2023/2023-10-24-rings-and-leaf-resumes-collateral-redemption-and-withdrawal/","name":"","type":"other","archive_url":"https://web.archive.org/web/20260829140747/https://pando.im/news/2023/2023-10-24-rings-and-leaf-resumes-collateral-redemption-and-withdrawal/#faqs","credibility":3,"archive_timestamp":"2026-08-29T14:07:47+00:00"},{"url":"https://pando.im/news/2023/2023-12-18-further-service-restoration-of-pando-leaf/","name":"","type":"other","archive_url":"https://web.archive.org/web/20260829140822/https://pando.im/news/2023/2023-12-18-further-service-restoration-of-pando-leaf/#explanation-of-asset-prices-on-pando-leaf-and-pando-rings","credibility":3,"archive_timestamp":"2026-08-29T14:08:22+00:00"},{"url":"https://www.halborn.com/blog/post/explained-the-mixin-network-hack-september-2023","name":"","type":"other","archive_url":"http://web.archive.org/web/20260516234954/https://www.halborn.com/blog/post/explained-the-mixin-network-hack-september-2023","credibility":3,"archive_timestamp":"2026-05-16T23:49:54+00:00"},{"url":"https://defillama.com/protocol/pando-rings","name":"","type":"other","archive_url":"http://web.archive.org/web/20250914062321/https://defillama.com/protocol/pando-rings","credibility":3,"archive_timestamp":"2025-09-14T06:23:21+00:00"}],"source_tags":["defillama"],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-04T02:54:46.633477+00:00","updated_at":"2026-08-30T05:14:12.160938+00:00"}}