Themis Protocol, a lending platform, faced delays in deployment, leaving consumers waiting for its operational launch even after multiphased airdrops. However, on June 16, the project entered beta on Arbitrum, an Ethereum layer 2 platform, marking progress. Within eleven days, Themis expanded to over $1 million in Total Value Locked (TVL), but an emergency investigation ensued due to a suspected flashloan attack, emphasizing the project’s security concerns.
Despite prioritizing security and referencing PeckShield audits, Themis faced a setback with an alleged flashloan attack compromising the project. The protocol initially aims to collaborate with the hacker for fund recovery, resorting to legal avenues if necessary, while preparing a compensation scheme. PeckShield monitoring revealed the attacker’s siphoning of approximately $417,000 worth of Themis-wrapped ETH, highlighting liquidity challenges and the conversion of stolen assets.
The attack, attributed to a faulty oracle, saw the stolen funds channeled through Stargate Finance, leading to concerns about the platform’s security infrastructure. Nonetheless, Themis Protocol distinguishes itself as a layer-2 crypto trading platform offering NFT mortgage loans based on past NFT transaction data. With a governance model facilitating user participation based on risk levels, Themis continues to navigate challenges while striving to enhance security measures and operational resilience.
