PANews reported on May 30 that a trader lost more than $500,000 due to the abnormal VWAP mechanism of Chainlink oracle. The incident originated from the MEV robot JaredFromSubway on Ethereum making a large transaction of $210,000 in Curve's deUSD/USDT pool, causing the deUSD price in the low liquidity market to briefly surge to $1.03. The price fluctuation was transmitted to the Avalanche network through the Chainlink oracle, triggering the liquidation of users' positions on the Euler lending platform.

Chainlink supporter "ChainLink God" explained that the oracle uses the market-wide VWAP pricing mechanism and deUSD has been labeled as a "high-risk asset." Chaos Labs founder Omer Goldberg pointed out that there are design flaws in using VWAP in pools with insufficient liquidity, and suggested implementing a price cap or anti-outlier algorithm for stablecoins. Data shows that of the total supply of deUSD of $185 million, $42.7 million is circulated on the Avalanche chain.