Summary
Onyx Protocol is a Compound Finance fork and DeFi lending platform on Ethereum that launched a V2 iteration in 2024 following two devastating exploits — one in November 2023 ($2.1M) and a second in September 2024 ($3.8M) — both exploiting the same known vulnerability in the Compound V2 codebase. After the second hack, the community voted to shut down the Ethereum lending market and relaunch as Onyx Core; V2 targeting compliance with the U.S. CLARITY Act launched in Q3 2025 on a new XCN Ledger infrastructure. Total confirmed losses across both exploits exceed $5.9 million.
Connected Entities
1 entities- + 2 more
Timeline(13 events)
2022-01-01
CertiK completes audit of Onyx Protocol — the last known independent security audit. Subsequent protocol updates and new market deployments were not re-audited.
2023-10-01
Onyx DAO passes governance Proposal 22 adding an unfunded PEPE market; only 11 total votes cast with one address controlling ~97% of vote weight.
2023-11-02
First exploit: attacker (0x085bdff2c522e8637d4154039db8746bb8642bff) drains $2.1 million (1,164 ETH) using an empty-pool rounding error in the Compound V2 fork. 1,140 ETH deposited to Tornado Cash. TVL drops 87%.
2024-01-01
Onyx DAO passes recovery proposals including plans to launch V2 money market with security improvements targeting the rounding-error vulnerability.
2024-09-26
Second exploit: attacker (0x680910cf5Fc9969A25Fd57e7896A14fF1E55F36B) drains $3.8 million using the same Compound V2 exchange-rate manipulation plus a new NFTLiquidation contract flaw. Stolen assets include 4.1M VUSD, 7.35M XCN, 50K USDT, 5K DAI, 0.23 WBTC.
2024-09-26
VUSD stablecoin depegs to $0.2757 — a 72% decline within 24 hours of the exploit.
2024-09-27
OIP-46 (Relaunch Onyx Core) proposed. Protocol announces shutdown of Ethereum lending market and 1:1 lender reimbursement commitment.
2024-09-29
OIP-46 passes with 100% community approval (no opposition votes recorded).
2024-10-01
OIP-46 executed. Ethereum lending market shut down; Onyx Core relaunch initiated.
2025-01-01
XCN token surges approximately 1,500% to $0.05 in a speculative rally before falling ~85%.
2025-08-01
OIP-60 deployed: Onyx Points rewards for stakers activated; gas-free wallet launched; Onyx AI v2 and website overhaul released.
2025-10-01
Onyx V2 launches natively on XCN Ledger (Layer 3) with gas-free transactions, Arbitrum Nitro EVM compatibility, and CLARITY Act compliance positioning.
2026-03-27
Goliath proof-of-stake Layer 1 mainnet goes live as part of the expanded Onyx ecosystem.
Decision Log
- hash: 4H9si3obFitJfmfC1oLP8sA5dc8rWPyGk7FTTPRjGzGL
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, 2:54:28 AM
last updated: 5/28/2026, 3:28:45 AM
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