On December 28, the Cosmos ecosystem's perpetual contract platform, Levana Protocol, experienced a severe security breach, reported by The Block. The attack led to a substantial loss exceeding $1.1 million. Between December 13 and December 26, the attacker managed to extract 10% of the Levana liquidity pool, according to a post-incident report shared by the Levana team.
However, Levana reassured users that their existing trading positions and profits remained unaffected by the attack. As a mitigation strategy, Levana proposed compensation for the affected liquidity providers through a combination of protocol fee distribution accrued during the hack and airdrops. The team is actively working on resolving the issue and reinforcing the platform's security.