Nostra, a DeFi Lender operating on Starknet has been forced to suspend borrowing for two liquid staking tokens. The suspension stemmed from the detection of a price feed malfunction.

The said malfunction raised the reported prices of xSTRK and sSTRK to levels that were about three times higher than their real market value. Hence, there are heightened concerns about false asset liquidations. 

Price Feed Error Triggers Borrowing Suspension

Through its internal systems, the Nostra DeFi Lender detected a price feed error which caused adverse effects on xSTRK and sSTRK which function as liquid staking derivatives of STRK on March 24. The incorrect price values provided the potential to trigger unnecessary collateral position sell-offs. To protect user assets Nostra disabled borrowing of tokens before more potential losses could occur.

Nostra indicated in their statement that the lack of an additional Oracle system made risk management challenging for borrowers because of increased problems. Nostra tells its users holding xSTRK and sSTRK collateral to take their deposits out immediately for safety reasons.

“We’ve identified a critical issue with the price feed for xSTRK and sSTRK, which on 24 March 2025 inflated their values by ~3x (e.g., xSTRK from $0.1793 to $0.5897) between blocks 1256310–1256360,” Nostra’s post on X read.

Lack of Backup Oracle Poses Challenges

The system operates without a backup price oracle for xSTRK and sSTRK resulting in its inability to stop future similar situations. Nostra declared that the system becomes vulnerable to risks when it operates without fallback oracle functionality. User fund security stands as the main priority for the team which is working on additional measures to boost price feed reliability.

Nostra’s Position in Starknet’s DeFi Ecosystem

Through Nostra users access a lending platform that enables borrowing different assets by depositing collateral on Starknet. The protocol can accept various tokens where Ether (ETH) and STRK. Additionally, USDC and USDT are included among the supported options. The data from L2Beat reveals that the combined TVL of Starknet DeFi protocols reaches $575 million whereas Nostra currently maintains a TVL of $55 million.

Liquid Staking Tokens and Their Role in DeFi

The Endur protocol issues xSTRK tokens and Nimbura delivers sSTRK tokens as liquid staking options to their DeFi customers. Users who stake STRK can preserve their flexibility by using these tokens to conduct various DeFi operations. The price feed glitch showed the critical need for dependable oracle data to ensure proper functioning of derivatives based on staking in lending markets. Borrowing services for the affected tokens have not received any timeline from Nostra although the organization continues with monitoring efforts.