Following the attack on Cream Finance V1, the Band Protocol withdrew its price feeds support to protect users’ safety.
On the 27th of October 2022, CREAM, a DAO-governed platform built on Ethereum, was attacked three times in a few months. The protocol lost over $130 million because of inferior S2 security measures, which impacted the trust of its users.
The attacker took advantage of CREAM’s oracle system to collect a loan, utilizing inferior assets as collateral. Since the collateral’s value was lower than the loan taken, the hacker simply made away with a large sum of money.
In response to the attack, CREAM decided to remove all token allocations given to its team and share 1,453,415 CREAM tokens with the victims of the attack. They also delisted a set of tokens to increase security across the board.
Responding to CREAM’s measures, the Band Protocol, a cross-chain data platform that connects decentralized projects to real-world data sources, announced its decision to cease price feeds support for Cream finance V1.
The decision came after the Band Protocol reached out to the CREAM team and could not agree on the next step.
Similarly, when UST collapsed earlier in August, Terra validators decided to halt the Terra chain. The Band Protocol reached out to the mirror team but got no response. Eventually, they decided to cease support for the Terra and mirror protocol
In its tweet, the Band Protocol made it clear that its paramount priority is protecting the safety of crypto users, and as such, it cannot support questionable projects.
With the CREAM team shifting their focus to their V2 project, the Iron Bank the Band Protocol has announced its continued support for the new V2 project.
