Lodestar Finance
Summary
Lodestar Finance is an Arbitrum-based decentralized money market protocol that enables lending, borrowing, and leveraged trading against crypto collateral. On December 10, 2022, the protocol suffered a flash loan exploit in which an attacker manipulated the price oracle for the plvGLP collateral token, draining approximately $6.9 million from depositors. The protocol subsequently relaunched in April 2023 with a V2 update, partially compensating victims with recovered GLP assets and esLODE tokens, though the attacker was never identified and no confirmed negotiated return of funds occurred.
Connected Entities
1 entities · 10 linked investigationsTimeline(8 events)
2022-12-10
Flash loan exploit drains approximately $6.9 million from Lodestar Finance via plvGLP oracle price manipulation using the donate() function on Plutus DAO's GlpDepositor contract.
CoinTelegraph2022-12-10
Lodestar Finance sets all interest rates to zero and pauses borrowing and liquidations; publicly appeals to the attacker via social media for a white-hat agreement. No response confirmed.
Bitcoin.com News2022-12-10
Plutus DAO publishes official statement confirming its platform was unaffected; designates surplus GLP in plvGLP vault for Lodestar depositor reimbursement.
Plutus DAO Medium2022-12-11
CertiK and EigenPhi publish technical post-mortems confirming GLPOracle design flaw as sole root cause; attacker wallet identified as 0xc29d with proceeds bridged to Ethereum.
CertiK Incident Analysis2023-04-08
Lodestar Finance relaunches on Arbitrum as V2; protocol attracts over $30 million in TVL and generates over $23,000 in protocol revenue in its initial period.
Lodestar Finance / IQ.wiki2023-05-01
Lodestar Finance governance approves addition of ARB token support to lending markets.
IQ.wiki — Lodestar Finance2023-10-01
Lodestar Finance distributes approximately $2.4 million in recovered GLP assets (roughly one-third of exploit losses) to affected depositors; 750,000 esLODE tokens allocated as supplemental victim compensation.
IQ.wiki — Lodestar Finance2023-11-01
Lodestar Finance receives STIP Round 1 grant from Arbitrum DAO; over 750,000 ARB distributed to protocol users as liquidity incentives.
Arbitrum Forum — STIP Round 1Decision Log
- hash: AKoLqU7djmDnq3fgLaVaKnbcLzzauNTGHHbJFJ8Kizis
- hash: 7PzbhNuDkfMkJqowoZKDkQb5aiHuvZMjTohQhfatsQG6
- hash: 7K8dFDNQb52ZuAvZZ3xfQQRUhBpnyQGYjFKEhrR1ogVS
This investigation is cryptographically anchored to the Solana blockchain and source URLs are archived via the Internet Archive.
model: claude-sonnet-4-6
generated: 6/1/2026, 5:48:20 PM
last updated: 6/4/2026, 8:05:47 PM
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