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Security audit finds multiple flash loan vulnerabilities in Sky Lending protocol

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A security analysis of the Sky Lending DeFi protocol identified multiple vulnerabilities related to flash loan attacks. The report, prepared by a senior DeFi security research team and dated October 8, 2026, examined the protocol's core contracts and a recent upgrade. The most critical risks involve oracle price manipulation and a re-entrancy flaw in reward withdrawals, which could lead to significant losses. The protocol has a total value locked of approximately $5.9 billion across Ethereum and several layer-2 networks. The overall flash loan exposure was assessed as moderate-high.

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