Nostra Incident Shows How Thin NSTR Liquidity Became a Starknet Collateral Risk

CertiK reported on September 18 that approximately $1.92 million of assets borrowed in Nostra’s NSTR oracle incident had been bridged to Ethereum, including 234.57 ETH and 1.3 million DAI. The movement followed Nostra’s September 17 confirmation that an account had used inflated NSTR collateral to borrow roughly $3.5 million in assets, prompting the Starknet protocol to pause core money-market functions.

CertiK tracks assets bridged to Ethereum

According to CertiK, the assets moved to Ethereum represented a substantial portion of the funds borrowed through the incident. Its report identified 234.57 ETH and 1.3 million DAI among the assets bridged off Starknet, placing the tracked value at about $1.92 million.

The report provides a measurable update on the movement of the borrowed funds, but does not establish a final loss figure.

Nostra pauses money-market functions

Nostra said on September 17 that a manipulated NSTR oracle price allowed one account to borrow approximately $3.5 million in ETH, STRK, USDC, USDT, WBTC and DAI against inflated NSTR collateral.

The protocol halted lending, borrowing, withdrawals and liquidations while investigating the incident, removing the main routes for users to open or close money-market positions or withdraw assets.

NSTR circulating value exposed the collateral gap

NSTR’s reported circulating market capitalisation was roughly $550,000 to $590,000 at the time, according to The Crypto Times. The approximately $3.5 million borrowed therefore exceeded the token’s reported circulating value by more than five times.

That mismatch is central to the incident: an inflated oracle price made a thinly capitalised token appear sufficient to support borrowing across several more liquid assets.

Losses and recoveries remain unconfirmed

CertiK’s bridge tracking shows where part of the borrowed assets went, but it does not establish whether they will be recovered. Separately, SlowMist classified the event as an oracle-manipulation exploit and said final losses and any recoveries remained unconfirmed.

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