Update on recent incident affecting Numa

We’re writing to share that Numa recently learned of a highly sophisticated price manipulation targeting our lending functionality. While our investigation is still ongoing, we want to provide transparency into what we know now, what we’re doing about it, and what comes next.

What happened

On April 18th at approximately 9:00PM UTC, a user was able to manipulate token prices to create excess personal gain. This resulted in unintended profit of approximately 292.96 rETH in protocol assets. The issue was discovered on April 18th at approximately 10:00PM UTC, and we immediately initiated our incident response procedures. In the simplest terms, the user was able to open large short and long positions, manipulate the price of the NUMA token, remove collateral, and exit through the vault. 

What we’re doing

Our team has been working around the clock alongside our auditor, Sherlock, and independent security professionals to better understand the mechanisms that enabled this behavior. We’ve paused affected protocol functions, including opening loans and liquidating positions, to prevent further actions and are actively monitoring for related activity across the ecosystem. 

What comes next

We are committed to full transparency as we work through this. In the coming days, we’ll share more expansive information with all relevant technical and procedural details. Our priority right now is securing the protocol and assessing recovery paths.

In the short-term, we will be working to recover the NUMA token backing and replace the missing collateral from loan positions. The exact details on how this will happen will be announced later this week. Among the solutions, we are expecting to move the existing rewards to the vault, deposit personal and protocol funds into the vault, and raise outside capital to deposit into the vault. Over the next couple weeks, we will be making the appropriate changes to the protocol, so we can reopen lending and ensure this type of manipulation can’t happen in the future. 

To the Numa community, thank you for your patience and continued trust. While this is a difficult moment, we are approaching it with the seriousness it demands and are doing everything we can to move forward with clarity and accountability.

If you believe you have relevant information or questions, please reach out in our official Telegram group.