MetronomeDAO revealed that roughly $16 million worth of synthetic assets in its swap module are effectively unbacked due to trading bots systematically exploiting stale Chainlink ETH/USD oracle prices on Base for several months. Approximately 6,367 msETH and 4.57 million msUSD are affected, representing 31% of total msETH supply and 16% of msUSD supply. The oracle experienced a median latency breach of around 54 seconds, stretching to 5 minutes and 37 seconds in extreme cases. MetronomeDAO deployed over $34 million in defensive looped positions and injected $6.5 million in emergency protocol-owned liquidity to shore up the system. Swap functionality has been paused pending architectural upgrades, with higher fees implemented across all synthetic asset pairs.
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