ostium

The co-founder of the real-world asset perpetual contract protocol Ostium, Kaledora, published a statement explaining the financial and revenue model of the protocol. She stated that approximately $44.7 million in total revenue over two years on Dune comes from four on-chain fees: $20.39 million in opening fees, $16.5 million in spreads, $4.75 million in rollover fees, and $3.35 million in liquidation fees.Of the aforementioned revenue, $22.14 million (49.6%) flows to the OLP treasury, $19.55 million (43.8%) is for liquidity costs, including $16.05 million for hedging and $3.49 million in hedging interest, leaving a gross profit of $2.96 million (6.6%). She noted that the total on-chain revenue does not include off-chain hedging costs, and prior to the liquidity upgrade in April, the protocol did not have the capability to monetize traffic; a security incident occurred just months after the system was upgraded.In terms of financing, Ostium raised $300,000 in 2022, $3.6 million in 2023, $4.1 million in 2024, and $19.4 million in 2025. The team is expected to expand from about 12 people in 2025 to 35 people by the second quarter of 2026, investing in costs related to data authorization, marketing, cloud infrastructure, auditing, and AI. She mentioned that the company has not reserved a balance sheet sufficient to cope with such incidents and that the silence has been too long. The next step will allow the remaining 345 OLP holders to share in business growth, with plans to announce the second phase recovery plan in the coming week.

According to The Defiant, Ostium has announced the previous loss compensation arrangements and will officially open the compensation channel this Wednesday, with a total of 3,666 damaged wallets included in the disposal scope.According to the plan, 3,321 addresses with losses not exceeding $1,000 can receive full reimbursement, meaning that this group of small-scale victims can recover all their losses.The remaining 345 wallets collectively bear at least 86% of the total loss of approximately $23.8 million. These 345 addresses with significant losses can choose one of two arrangements: either receive a one-time payment of $1,000 directly or file a proportional claim for the portion of their assets that has not yet been recovered.

ESS Frontier LLC filed a lawsuit on September 4, 2026, in the United States District Court for the Southern District of New York, case number 1:26-cv-07645, against Ostium Foundation, Ostium Labs Co., Deltax LTD., DX Group Limited, Ostium co-founder and CEO Kaledora Kiernan-Linn, and John Doe Transferees 1-10. The nature of the case is arbitration matters under other statutes, with the cause of action being a petition for a mandatory arbitration order and the appointment of an arbitrator pursuant to 09 U.S.C. § 206.The plaintiff also submitted a complaint, a motion for a temporary restraining order, a motion to seal limited materials, and related declarations. Public reports indicate that the lawsuit involves approximately $15 million in crypto loans, with ESS Frontier LLC suing as the assignee of the debt owed by Hong Kong lender Minghui Zheng. On September 14, the plaintiff submitted the first amended complaint, adding Minghui Zheng as a co-plaintiff. The court is scheduled to hold a hearing on September 17. Ostium is an on-chain perpetual contract protocol deployed on Arbitrum, providing leveraged trading for stocks, commodities, foreign exchange, and crypto assets.

According to Hyperliquid News monitoring, a certain whale recently migrated $7.29 million from Ostium to Hyperliquid and opened 10,124 long positions in the S&P 500, worth approximately $74.33 million.This position currently accounts for 13.03% of the market's open contracts.

According to the official report from Ostium, the core of this attack lies in the intrusion of the off-chain price reporting system's permissions, unrelated to smart contract vulnerabilities. After gaining off-chain authorization, the attacker submitted forged prices (5,000 USD and 60,000 USD) to the BTC-USD market using the legally registered forwarding paths of the protocol, completing an atomic open-close arbitrage cycle within the same transaction, and starting with a rolling scale of 100 USDC. Through 8 transactions, they extracted 23.75 million USDC from the OLP treasury within 5 minutes, until the treasury's circuit breaker mechanism was triggered.The root cause is the lack of a multi-party approval mechanism at the same level as on-chain multi-signature in the off-chain infrastructure, creating a single point of permission vulnerability. The stolen funds have been converted to ETH and mixed through Tornado Cash, and tracking efforts are still ongoing.

According to an official tweet from Ostium, the on-chain trading platform Ostium announced that it will reopen trading at 10:00 AM Eastern Time on July 23. After the restart, all open positions and pending orders will remain unchanged and will be re-marked at the real-time market price at the time of the restart; if a position reaches the liquidation line at the restart price, it will be automatically liquidated; take profit, stop loss, and limit orders will also be executed at real-time prices upon restart.The resumption of trading will be carried out in phases, starting with protective operations such as closing positions, adding margin, and modifying/canceling orders, followed by the reopening of new position opening functions. In terms of liquidity provision, new OLP deposits are suspended, and existing LP withdrawals will be processed in the next settlement cycle, with details of the capital recovery plan to be announced later.

The on-chain perpetual contract platform Ostium announced an update on X, stating that it is moving forward with restarting trading within this week and will issue a notification 24 hours before trading resumes. Auditors, third-party cybersecurity experts, and the engineering team are conducting final checks. Ostium explained the handling of positions after trading resumes: all positions will be re-marked at the real-time market price at the time trading resumes; traders will not be liquidated due to price fluctuations during the suspension period; however, if positions are below the liquidation threshold when trading resumes, they will still be liquidated; open orders will be retained as they are.For the affected liquidity providers, Ostium Labs stated that it is formulating a recovery plan, intending to fund from its own balance sheet and collaborate with both new and old partners to participate.

Ostium released an update on the attack incident. Its liquidity provider fund was attacked on July 15, resulting in a loss of 23,752,746 USDC. Preliminary investigations indicate that the attacker compromised the off-chain infrastructure that provides price data to the protocol and submitted disguised illegal price reports, extracting artificially generated profits from the fund by quickly opening and closing multiple large positions.Ostium stated that traders' collateral is stored in independently isolated smart contracts and was not affected by this incident, with all trading positions remaining open. The team paused trading and froze all trading contracts within 60 minutes after the first attack transaction occurred. Currently, Ostium is collaborating with Mandiant, zeroShadow, Collisionless, SEAL 911, and law enforcement agencies, coordinating with trading platforms, bridging contracts, and stablecoin issuers to advance the investigation. The engineering team is focused on repairing and strengthening the relevant infrastructure to support the secure resumption of trading.Ostium indicated that it will notify at least 24 hours in advance before unfreezing the trading contracts. After trading resumes, existing positions will be marked at the price at the time of reopening, unaffected by price fluctuations during the pause. Addressing the affected liquidity providers and securely resuming trading remains the current top priority.

According to tracking data from the Web3 asset data platform RootData, in the past 7 days, the crypto media platform BSC News has been the project that X (Twitter) top figures have unfollowed the most. The new influential figures on X who have unfollowed this project include well-known cryptocurrency trader Ansem (@blknoiz06) and cryptocurrency trader Ash Crypto (@AshCrypto). In addition, the project that X top figures have unfollowed the most also includes Ostium.

The perpetual contract DEX Ostium has confirmed that there is an anomaly in its OLP treasury. All trading on the platform has been suspended, and the team is investigating the related issues.

The perpetual contract trading platform Ostium on Arbitrum is suspected to have been attacked, resulting in a loss of approximately 12 to 18 million USDC, accounting for about 35% of its over 34 million dollar treasury size.The attacker allegedly compromised the oracle signer’s private key, utilized the registered PriceUpkeep relayer to submit favorable prices for future times, and looped opening and closing positions to deplete the treasury funds. Currently, Ostium officials have not responded.

The on-chain perpetual contract trading platform Ostium announced a partnership with Nasdaq to use its U.S. stock market data to support stock perpetual contract products on the platform. Ostium stated that this makes it the first on-chain trading venue to offer stock perpetual contracts supported by Nasdaq data.The platform claims that users will be able to gain exposure to U.S. stocks through on-chain infrastructure while retaining features such as transparency, instant settlement, and self-custody. Ostium focuses on on-chain leveraged trading of traditional financial assets, covering categories such as stocks, indices, commodities, ETFs, and foreign exchange. Currently, the platform's cumulative trading volume has exceeded $50 billion, with more than 26,000 trading users.

According to Fortune, the decentralized exchange Ostium announced the completion of a $20 million Series A funding round, led by venture capital firm General Catalyst and the cryptocurrency division of quantitative trading firm Jump Trading. Coinbase Ventures, as well as cryptocurrency market makers Wintermute and GSR, also participated in the round. Sources revealed that this funding round values Ostium at approximately $250 million, bringing its total funding to $280 million to date.It is reported that Ostium allows users to trade real-world assets such as stocks, metals, oil, and certain cryptocurrencies, supporting higher risk through perpetual futures.

ChainCatcher news, according to The Block, cryptocurrency startup Ostium Labs has raised $3.5 million in funding to develop a digital goods perpetual swap protocol, with participation from General Catalyst, LocalGlobe, SIG, and Balaji Srinivasan. It aims to attract traditional commodity traders and cryptocurrency native traders by providing a transparent and flexible alternative for trading assets such as oil, Bitcoin, and forex pairs.