PANews reported on May 8th that Tydro Markets, a non-custodial liquidity protocol, disclosed that it suffered a suspected state-sponsored attack on May 4th. Chaos Labs notified Tydro of the attack and recommended suspending all markets. No erroneous prices were pushed to the market before or after the suspension, and user positions were unaffected. Chaos Labs confirmed that the suspension could be lifted after the key rotation, but Tydro, out of caution, decided to remain suspended until the Chainlink oracle migration is complete. Tydro is currently working with Chainlink and Redstone to deploy a new push oracle. After the Chainlink migration is complete, there will be a 48-hour time lock, at which time the specific time for lifting the suspension will be announced.

After the suspension is lifted, a 4-hour grace period will be provided during which borrowers with a health factor below 1 can repay their loans or provide additional collateral to avoid liquidation risk. Tydro will also assess all user positions before resuming trading to determine if market parameters need adjustment. A full analysis report, including oracle hardening and multi-oracle redundancy plans, will be released later.

Previously, on May 5th, it was reported that the non-custodial liquidity protocol Tydro suspended all lending markets due to issues with third-party oracles.