Blockaid flags ongoing exploit on Tranche Vault tied to Fence Finance and Valinor on Avalanche, draining approximately $1.01M.
Security & Exploits ·
Security researcher Blockaid identified an ongoing exploit targeting Tranche Vault on Avalanche, with approximately $1.01M in funds drained. The vulnerability is connected to Fence Finance and Valinor, protocols operating on the Avalanche network.
The exploit appears to involve unauthorized access to vault mechanisms, allowing an attacker to withdraw assets. Tranche Vault systems typically manage layered risk exposure across deposited collateral, but the specific attack vector and whether funds remain recoverable have not been detailed.
It remains unclear whether the exploit has been halted, whether additional funds remain at risk, or what remediation steps Fence Finance and Valinor have undertaken in response. The incident underscores ongoing security challenges within Avalanche's DeFi ecosystem, particularly around vault and liquidity protocols.