Cozy V2

Cozy Finance confirmed an exploit affecting its v2 protection markets on Optimism, draining funds from the Main Set and Rabbithole Set. The affected markets relied on UMA’s Optimistic Oracle to resolve covered events.

Cozy subsequently paused the affected Sets and stated there were no longer any open proposals against its UMA-based markets while it coordinated with UMA regarding dispute resolution. The precise mechanism that allowed the attacker to obtain payouts has not yet been confirmed.