# BLC Stablecoin Loses 99% Value in Oracle Attack $912K drained via manipulated price feed on BNB Chain. - **Source:** [Bitcoin News](https://brifing.si/source/d8aeaf1e-9839-4dad-9d25-7a6bf3fbeef8) - **Published:** 2026-07-22 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/91e214cc-49e6-4073-b1e0-39d4d1267284 ## The Collapse in Brief Algorithmic stablecoin Balance Coin (BLC) on BNB Chain plummeted from $1 to $0.0008 after an attacker manipulated its oracle price. $912K worth of BTCB was drained from 42DAO-controlled vaults. Coinmarketcap data shows a 99.92% 24-hour drop. ## Attack Mechanism The attacker injected artificially low BTCB prices using the Spotter contract in this MakerDAO-like system. The oracle accepted this value without market verification. Healthy vaults were instantly liquidated, with collateral sold on Pancakeswap in a single transaction combo. ## Missing Safeguards Slowmist analysis revealed critical absences: No price deviation checks against external markets, no oracle drawdown limits, no price floor for obvious errors, and no delay between price updates and liquidations. A single transaction caused the $912K loss. ## Market Impact BLC's market cap crashed from $3.5M to $2.8K. Trading volume spiked to $103K as speculators attempted bottom buys, failing to restore the peg. 42DAO hasn't announced recovery plans. The stolen BTCB remains in the attacker's wallet. ## Historical Precedents BLC joins TerraUSD (2022), USDC (2023), and Iron Finance in stablecoin collapses. Oracle manipulation remains a recurring DeFi vulnerability. While copying MakerDAO's architecture, Balance Protocol omitted its evolved security layers. ## Why It Matters Though a small project, each collapse strengthens regulators' stablecoin oversight arguments. The 2026 GENIUS Act mandates reserve proof and system resilience. This event underscores the importance of evolving security standards in DeFi protocols. ## Sources covering this story - https://news.bitcoin.com/another-stablecoin-bites-the-dust-as-blc-crashes-from-1-to-near-worthless/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._