scnSOL Incident Update

We recently liquidated a large amount of scnSOL deposited on Apricot as a result of a price anomaly caused by us depending on a price source that was no longer in maintenance. As a risk policy, we usually require listed tokens to have at least 2 price sources, as we aggregate and cross check prices from 3 different oracles. In the case of scnSOL however, we did not fully enforce this requirement and allowed it to depend on a single price source when listing it on Apricot.

While we do have automated price monitoring infrastructure in place, when the single price source went out of maintenance it gave us an outdated price, which our automated infrastructure was unable to cross-check with another source. This led to the subsequent mispricing of scnSOL and the liquidation that followed. We believe the accounts that have been liquidated are owned by malicious actors who tried to take advantage of the price anomaly. However as a result of Apricot’s LTV limit, most of those accounts were not able to borrow more than their deposit.

Going forward, we will start fully enforcing the two-source requirement on all listed tokens, and we may perform some adjustments on the list of supported collaterals and their LTV values to reflect their data availability and market depth.