Nostra, a lending protocol on Starknet, has temporarily halted borrowing for two liquid staking tokens following a critical issue with its price feeds, the decentralized finance (DeFi) protocol disclosed. On March 24, Nostra’s price feed errors caused the reported prices of xSTRK and sSTRK to surge to nearly three times their actual value, as reported by Nostra on the X platform. This inflated price feed could have led to unnecessary liquidations of secure positions, potentially resulting in users with healthy positions being liquidated. Consequently, Nostra has suspended further borrowing against xSTRK and sSTRK collateral deposits and advised users with existing deposits to withdraw their collateral promptly. The protocol emphasized the lack of a secondary oracle to support these assets, making it challenging to prevent similar events in the future. Starknet, a layer-2 scaling chain of Ethereum that utilizes zero-knowledge (ZK) proofs, launched its mainnet in late 2021. It boasts a total value locked (TVL) of around $575 million, with Nostra being one of the significant DeFi projects on the chain, with a TVL of approximately $55 million. Nostra allows users to post collateral in one token to borrow in another token, with popular collateral options including Ether, STRK, USDC, and USDT stablecoins. STRK is intended to be staked in exchange for a share of the network’s fee revenues, while xSTRK and sSTRK are liquid staking tokens issued by independent DeFi protocols.