Nostra, a lending protocol on Starknet, has temporarily halted borrowing for two liquid staking tokens due to a "critical issue" with its price feeds, the decentralized finance (DeFi) platform announced. 

On March 24, Nostra detected errors in its price feed, which significantly inflated the reported values of xSTRK and sSTRK—two liquid staking derivatives of Starknet’s native STRK token—by nearly three times their actual worth. The protocol shared this update via a post on the X platform. 
 

According to Nostra, such an inflated price feed could have triggered unnecessary liquidations of otherwise stable positions, causing users with healthy holdings to be liquidated unexpectedly. 

In response, Nostra has suspended any further borrowing against xSTRK and sSTRK collateral deposits. Additionally, the protocol has advised users with existing deposits of these tokens to withdraw their collateral immediately. 

Nostra acknowledged the lack of a secondary (fallback) oracle for these assets, stating that since no alternative oracle is available, it cannot fully mitigate the risk of similar incidents in the future. 

"Our top priority remains to ensure the security of user payments.  Without a fallback oracle, the risks outweigh the benefits," the protocol emphasized. 

Starknet DeFi Ecosystem 

Starknet is an Ethereum layer-2 scaling solution that leverages zero-knowledge (ZK) proofs for security. Its mainnet was launched in late 2021, according to Messari. 

The network currently has a total value locked (TVL) of approximately $575 million, as per L2Beat data. 

Nostra, one of the major DeFi protocols on Starknet, holds a TVL of around $55 million, based on its website. The platform allows users to post collateral in one token and borrow another. Its most widely used collateral assets include Ether (ETH), STRK, and stablecoins like USDC and USDT. 

STRK is designed to be staked in exchange for a share of Starknet’s network fees, according to its documentation.