MetronomeDAO disclosed that roughly 6,367 msETH and 4.57 million msUSD in circulation, about $15.7 million at current prices, have no collateral behind them, after trading bots spent months exploiting delayed price data in the protocol's swap feature.
The hole equals about 31% of all msETH and 16% of all msUSD in existence. If the tokens fall in price and the gap gets realized, the losses land on liquidity providers, the users who deposited msETH and msUSD into trading pools on exchanges like Curve and Aerodrome to earn fees, according to a post-mortem published July 30.
Metronome said the damage is confined to its swap module, and that its Morpho lending markets, MetBasis product, and the core minting protocol still work normally.
msETH is down 25% in the last 24 hours to $1,378, while trading volume jumped roughly ninefold to $51.7 million, per CoinGecko. msUSD is trading 25% below $1, at $0.737.
Metronome Synth holds $10 million in TVL across Ethereum, Base, and Optimism, per DefiLlama, down from $17.56 million on Thursday.
