Skip to main content
Sign in

YieldBlox Stellar Oracle Manipulation Exploit (Feb 2026)

avoid.net/yieldblox-stellar-oracle-manipulation-exploit-feb-20260/100·88% conf.
[AI-DRAFTED · AWAITING VERIFICATION]

Auto-generated score, not yet verified against the scoring model. Under review — treat as indicative, not a verdict.

anchored·4hpvsv…NS5q

Summary

On February 22, 2026, the YieldBlox DAO-managed lending pool on Stellar's Blend V2 protocol was drained of approximately $10.97 million via a thin-liquidity oracle manipulation attack targeting the USTRY/USDC pair on the Stellar DEX. An attacker inflated the Reflector VWAP oracle price of USTRY from approximately $1.05 to $107 with a single low-volume trade costing roughly $5, then used overvalued USTRY collateral to borrow the pool's entire XLM and USDC reserves. Stellar Tier-1 validators froze approximately 48 million XLM (~$7.5 million) before the funds could be fully bridged out; the protocol developer Script3 committed to full depositor compensation and the attacker rejected a 10% white-hat bounty offer.

Have evidence about YieldBlox Stellar Oracle Manipulation Exploit (Feb 2026)?

Timeline(9 events)

24 February 2025

Blend V2 Code4rena competitive audit with Certora Formal Verification launched, with a $125,000 USDC prize pool. Reported as the first Rust/Soroban formal verification contest in DeFi.

Code4rena audit listing

14 February 2026

Attacker's primary Stellar reconnaissance wallet created, seeded with 56.32 XLM, eight days before the exploit.

Rekt News on-chain forensics

21 February 2026

At 23:35 UTC, attacker creates SDEX manipulation burner account (GCNF5GNRIT6VWYZ7LXUZ33Q3SR2NUGO32F5X65VVKAEWWIQCKGYN75HB) with 15 XLM. At 23:38 UTC, attacker places inflated sell offer for USTRY at 107 USDC per USTRY, approximately 100-fold fair value.

Rekt News on-chain forensics

22 February 2026

At 00:10:21 UTC, second attacker-controlled account executes price-setting trade of 0.05 USTRY at approximately $106.7, dominating the Reflector VWAP pricing window. At 00:24-00:25 UTC, attacker deposits USTRY collateral and borrows 1,000,196.70 USDC and 61,249,278.31 XLM, draining the entire pool of approximately $10.97 million.

Rekt News; Halborn; BlockSec; QuillAudits

22 February 2026

Stellar Tier-1 validators coordinate to freeze approximately 48 million XLM (approximately $7.2-7.5 million) in attacker Stellar accounts before bridging can complete.

Protos; Rekt News

22 February 2026

Script3 issues public statement on X confirming exploit is isolated to a single pool, that no other Blend pools are affected, and commits to full depositor compensation for USDC, XLM, and EURC losses.

Script3 on X

22 February 2026

YieldBlox Security Council sends on-chain bounty message offering 10% white-hat incentive with 72-hour deadline in exchange for return of frozen funds and cessation of legal pursuit.

Rekt News

23 February 2026

Attacker consolidates approximately 380 ETH and bridges funds cross-chain between 09:17 and 09:26 UTC. Attacker does not respond to bounty offer before 72-hour deadline.

Rekt News on-chain forensics

27 February 2026

Attacker moves 100 ETH to Tornado Cash (tx 0xdc082828a2358ccb33b3837b49bfe678c31259aad59c39c76916a53f8c73853b), signaling intent to launder rather than return funds.

Rekt News on-chain forensics
Provenance & Audit Trail

Decision Log

This investigation is cryptographically anchored to the Solana blockchain (3 events). 13 of 16 cited source URLs have an Internet Archive snapshot.

model: claude-code-investigator

generated: 6/7/2026, 11:29:42 PM

last updated: 7/27/2026, 9:07:09 AM

1 view

avoid.net — verified advice for a post-truth world