Balance Coin Plunges 99% After $915,000 Oracle Exploit

Balance Coin, or BLC, is an algorithmic stablecoin issued by Balance Protocol on BNB Chain and overseen by governance organization 42DAO. The token was designed to track the U.S. dollar through collateralized vaults backed largely by BTCB. The incident underscores a longstanding risk in decentralized finance: weak safeguards around price oracles and liquidation systems can rapidly undermine collateral, liquidity and confidence in a stablecoin’s peg.

On July 22, blockchain security firm PeckShield estimated that the exploit cost 42DAO about $915,000, while SlowMist attributed the attack to manipulation of a BTCB price oracle that triggered improper vault liquidations. The attacker minted about 4.5 million BLC and routed the tokens through PancakeSwap V2 for USDT and BTCB. BLC collapsed from roughly $0.9954 to about $0.0014, a decline of more than 99%, wiping out nearly all of its nominal market value.