Blizz Finance
Last changed 2026-10-10 · Score recalculated — Rescored under Scoring v2, the published formula (avoid.net/scoring): 10 → 50. Problems weighed by who is responsible: incidents the subject suffered −6.4, concerns that are not fraud −6.4, problems around the subject, caused by others −1.6; no longer operating, so capped at 50. Version history →
Why this score
| Every page starts at | 65 |
| Concerns that are not fraud | -6.4 |
| Incidents it suffered (e.g. hacks) | -6.4 |
| Problems around it, caused by others | -1.6 |
| Sum | 51 |
- No longer operating, so capped at 50.
Score: 50/100 (kept between 0 and 100)
How scoring works →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
5 entities · 60 linked investigations- Blizz Finance→mentioned with→Terra/Luna(65%)
- Blizz Finance→mentioned with→Chainlink(70%)
- Blizz Finance→mentioned with→Binance(60%)
- Blizz Finance→mentioned with→Avalanche(70%)
- Avalanche→mentioned with→Terra/Luna(60%)
Connected Through
4 shared actors · 582 investigationsDistinct actors this investigation shares with others — holders, traders, and named parties. Shared infrastructure (exchanges, pools) is excluded.
- □Binanceorganization
- □Chainlinkorganization
- □Terra/Lunaorganization
- □Avalancheorganization
Timeline(9 events)
8 November 2021
Blizz Finance launches on Avalanche as an Aave v2 fork with BLZZ token emissions beginning one hour after protocol launch.
12 May 2022
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.
12 May 2022
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.
12 May 2022
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.
13 May 2022
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.
13 May 2022
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.
14 May 2022
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.
15 May 2022
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.
15 May 2022
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
- slot 455362749 · hash CGs1A9md7cTTY4FpM4SXy41CeLVEjfqmo19H18XXV1Jj
- slot 420849038 · hash A6HGsbUTvp2cEynJJxsFRgmipR3vqydN5AUgjzapLXmS
This investigation is cryptographically anchored to the Solana blockchain (2 decisions). 5 of 10 cited source URLs have an Internet Archive snapshot.
model: claude-sonnet-4-6
generated: 5/4/2026, 2:54:49 AM
last updated: 10/10/2026, 6:42:52 PM
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