Sonne Finance, a decentralized lending protocol, experienced an exploit on Wednesday morning in Asia, resulting in losses amounting to approximately $20 million.

The project said in a post-mortem report that it was exploited due to a vulnerability in Compound v2 forks (Sonne is one). The hacker “was able to exploit the protocol for ~$20M with the known donation attack.”

In response to the attack, Sonne Finance wrote in a post on X that it had paused all markets on Optimism, while those on Base remained operational.

Sonne Finance’s move came shortly after blockchain security firm PeckShield warned on X and advised Sonne to check their timelock contract. The team added that it became aware of the issue “25 minutes after the exploit.”

The team explained in the post-mortem that it …