Sonne Finance

Sonne Finance operates as adecentralized finance protocol that provides lending and borrowing services for digital assets. It is built as a fork of the Compound v2 codebase, enabling users to supply and borrow cryptocurrencies through smart contracts. The protocol supports assets such as USD Coin and Wrapped Ether, as indicated by the exploit targeting those contracts. Users interact with the protocol via the Ethereum blockchain, where the contracts are deployed. By supplying assets, participants can earn interest, while borrowers can obtain loans against collateral. The service functions without intermediaries, relying on code to enforce terms.

Specific quantitative details about the protocol's size, user count, or total value locked are not disclosed in the available sources. Sonne Finance distinguishes itself through its reliance on the Compound v2 fork architecture, which underlies its core lending mechanics. The May 2024 exploit highlighted a known donation attack vulnerability in its contracts, prompting the protocol to pause all markets to limit further losses. In response, Sonne Finance offered a bounty for the recovery of the stolen funds, although the attacker did not engage in negotiations.