BENQI🔺 (@BenqiFinance): Update on BENQI Markets

Update on BENQI Markets On May 4th, BENQI was notified by Chaos Labs that they had experienced an attack exhibiting patterns similar to those associated with a nation-state level actor. Following this notification, Chaos Labs advised all impacted protocols to pause affected markets until further information became available. At the time of the notification: -The BENQI Core Market operated with a dual-oracle architecture utilizing both Chainlink and Chaos Edge Oracle. -The BENQI Ecosystem Market, which supports long-tail assets, operated solely using Chaos Edge Oracle. Importantly, no user funds or positions were impacted at any stage, and the BENQI protocol remained secure throughout. Due to BENQI’s dual-oracle architecture, the Core Market was never exposed to material risk from this incident. In the event of any significant price divergence between oracle providers, the protocol is designed to automatically pause affected activity as a protective measure. Out of an abundance of caution, the BENQI team immediately implemented the following actions: -Transitioned all Core Market feeds to Chainlink-only, where the majority of protocol TVL resides. -Fully paused the Ecosystem Markets powered exclusively by Chaos Edge Oracle. The Core Market continues to operate normally under Chainlink-only feeds, with no disruption to user positions. The Ecosystem Markets were paused within minutes of the notification. Users remain able to repay loans and withdraw funds, however additional borrowing from paused markets has been temporarily disabled until further notice. Approximately 48 hours after the initial warning, Chaos Labs confirmed to the BENQI team that the affected keys had been rotated. Separately, BENQI had already been evaluating additional oracle providers as part of ongoing infrastructure diversification efforts. We will announce our selected secondary oracle partner in due course. Integration of any future provider will occur without protocol downtime. The safety of user funds and protocol stability remain BENQI’s highest priorities, and we will continue to take proactive measures to maintain the resilience and security of the platform.