Blizz Finance
Summary
Blizz Finance was a decentralized lending protocol on Avalanche, forked from Aave v2, that launched in November 2021 and was rendered insolvent in May 2022 when the Terra LUNA collapse triggered a Chainlink oracle circuit breaker that froze the LUNA price at $0.10 while the token's actual market price fell to near zero. Attackers exploited the stale price feed to borrow approximately $8.3 million in protocol assets using nearly worthless LUNA as collateral, draining the protocol entirely. The team announced permanent shutdown shortly after, recovering and distributing only approximately $1.5 million to affected users.
Connected Entities
1 entitiesTimeline(9 events)
2021-11-08
Blizz Finance launches on Avalanche as an Aave v2 fork with BLZZ token emissions beginning one hour after protocol launch.
2022-05-12
Terra LUNA price collapse begins. Chainlink's LUNA/USD price feed triggers its minimum price circuit breaker, freezing reported price at $0.10 while market price falls to near zero.
2022-05-12
Attackers begin depositing large quantities of LUNA (purchased at near-zero market prices) as collateral valued at the stale $0.10 oracle price, systematically borrowing all available liquidity across Blizz Finance pools.
2022-05-12
Protocol is drained of approximately $8.3 million in total liquidity before the team can invoke any pause mechanism. The governance timelock prevents an emergency response.
2022-05-13
Blizz Finance publicly acknowledges the exploit. Team states the protocol was drained 'before we could pause due to our timelock' and blames Chainlink's undocumented minimum price behavior.
2022-05-13
Rekt.news and multiple crypto news outlets publish coverage of the Blizz Finance and Venus Protocol exploits, attributing combined losses of over $21 million across both protocols.
2022-05-14
Blizz Finance publishes official post-mortem on Medium, detailing the Chainlink circuit breaker failure, the Aave v2 fork's lack of protective logic, and the team's unawareness of the minAnswer mechanism.
2022-05-15
Team announces permanent shutdown of the protocol, front-end, and official communication channels. Announces $1.5 million in recovered LUNA will be distributed to depositors via pre-attack snapshot.
2022-05-15
Team states they are engaging with a community that has allegedly identified some attackers, though no further public updates on attacker identification or additional asset recovery are made.
Decision Log
- hash: A6HGsbUTvp2cEynJJxsFRgmipR3vqydN5AUgjzapLXmS
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:49 AM
last updated: 5/19/2026, 9:18:08 PM
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