Virtue

Virtue is a stablecoin lending platform on IOTA Rebased. Borrow VUSD and earn yield with ease.

[Virtue @Virtue_Money]

https://t.co/xQ7JUiN21E

[Virtue @Virtue_Money]

The full technical report will be provided in a follow-up update.

We will publish the remediation and unfreeze plan before either is executed.

All official updates will be posted here first.

[Virtue @Virtue_Money]

⚠️ Scam warning

Remediation work is now underway, so impersonation attempts are expected.

- We will never DM you first.
- We will never ask you to connect a wallet, sign a message, or pay a fee to claim, verify or recover funds.
- There is no claim portal.

Any reply to this thread offering recovery or compensation is a scam.

[Virtue @Virtue_Money]

If you are a Stability Pool depositor, your position may have received a share of collateral from these liquidations. We will not make unilateral decisions about those balances. The remediation plan will explain the proposed treatment before it is executed.

If you were not liquidated, your collateral is intact.

[Virtue @Virtue_Money]

Remediation

Making the 45 affected users whole is our first priority. We have reconstructed every affected address and amount from on-chain state and will publish the process before taking action.

A substantial majority of the seized collateral is currently attributable to the attacker, so recovery efforts alone may not be sufficient to complete remediation.

[Virtue @Virtue_Money]

Timeline (all times UTC)
- 21:53, 28 Aug — the feed was pushed to $10,000,000 per IOTA. The attacker deposited 1 IOTA and minted 4,942,703 VUSD.

- 22:05–22:45, 28 Aug — the same feed was pushed down in stages, reaching $0.00000001 at several points against a real market price near $0.039. Healthy positions were forced below the 110% minimum collateral ratio. The liquidation bot acted on the reported prices, resulting in 47 liquidations affecting 45 users. The largest single seizure was at 22:18, with the feed at $0.0191.

- 23:14, 28 Aug — the attacker restored a plausible price and stopped. No activity from that address has been observed since.

- 02:32, 29 Aug — Switchboard removed from IOTA pricing.

- 03:29, 29 Aug — the protocol was frozen.

[Virtue @Virtue_Money]

What our price rule did not check was magnitude.

A price band or deviation limit would have stopped both legs, and that is going in before we unfreeze.

[Virtue @Virtue_Money]

The manipulated prices still came through the configured feed and were signed by the queue's registered oracles.

Virtue's price rule verified the aggregator ID, feed hash, oracle count and freshness of the result, and those checks passed.

Those controls established the source of the data, but they were not sufficient once the authorized upstream signer set had been compromised.

[Virtue @Virtue_Money]

On 28 August 2026, the Switchboard price feed used by Virtue for IOTA pricing was manipulated in both directions and used against the protocol.

An attacker gained control of the signing keys used by all fourteen oracles on Switchboard's IOTA mainnet queue and was able to report arbitrary IOTA prices.

On that deployment, the mechanism used to rotate
those keys could be invoked without an existing privileged authority.

[Virtue @Virtue_Money]

VUSD is currently materially undercollateralized as a result of the attacker position. Do not buy it expecting redemption at par while remediation is pending.

We will never DM you first, and there is no claim portal.

[Virtue @Virtue_Money]

Security incident — Virtue CDP protocol frozen

The protocol is frozen. Borrowing, repayment, deposits, withdrawals, liquidations and flash loans are halted.

47 liquidation events affected 45 users. Making those users whole is the first priority in our remediation plan.

🧵

[Virtue @Virtue_Money]

@iota

[Virtue @Virtue_Money]

Virtue’s 2025 performance confirms protocol maturity.

What we see is sustained usage across core mechanisms, liquidations executed as designed under real market conditions, and fee generation that reflects genuine economic activity.

For the @IOTA ecosystem, Virtue validated that a CDP-based system can operate reliably, with transparent risk management.

For users, this meant capital efficiency, clear rules, and a protocol that responds deterministically under stress.

This is what healthy DeFi looks like when design comes before growth.

[IOTA @iota]

Turn idle assets into opportunity. Discover how @Virtue_Money lets you unlock stable liquidity with VUSD — without selling your $IOTA.
https://t.co/v4Let1vsNK

[Virtue @Virtue_Money]

This year reminded us why transparency, resilience, and good design matter. 🙏
Thank you to everyone who chose to explore DeFi with intention, curiosity, and responsibility.

May this season bring perspective, rest, and renewed conviction for what you’re building next.

We’ll be here, on-chain, doing the work. ✨
Happy Holidays.

[Virtue @Virtue_Money]

If you mint VUSD and you’re not depositing it, you’re skipping half the value the protocol offers.

stIOTA rewards + discounted collateral hit different.

[ID.iota @id_iota]

https://t.co/vvQP4TPkjx

[Virtue @Virtue_Money]

@DeeprFinance GM 💙

[Virtue @Virtue_Money]

You asked for dark mode? It’s live.

[Virtue @Virtue_Money]

🔗 https://t.co/vxMnHtQBqK

[Virtue @Virtue_Money]

Virtue SkyEye is now live.

In the new Transparency section you can track the full liquidation history in our public dashboard, view active CDP positions, audit collateral types, review repayment flows, and explore protocol-wide historical patterns.

Every event is on-chain, searchable, and public.

Transparency, delivered. Link in the first comment ��️