The DeFi platform Onyx Protocol recently suffered a significant loss of approximately $2.1 million due to an exploit in an illiquid market. The attack took place on October 27 and was executed by leveraging a known rounding issue within the Compound v2 fork, which is the underlying foundation of the Onyx Protocol.

To execute the exploit, the attackers took advantage of the oPEPE market, which was deployed just five days prior without any liquidity. They filled the market pool with borrowed funds, and due to the rounding issue, these funds were then repaid. The attackers utilized instant loans to gather the necessary resources and manipulated exchange rates to carry out the attack.

DeFi platforms have been a common target for attackers, and it underscores the need for ongoing vigilance and security measures in the DeFi space.