Odaily reports: Nathan Allman, founder of the blockchain project Ondo Finance, passed away without leaving a will. His parents consequently inherited his estate, including a controlling stake and a substantial amount of ONDO tokens, escalating a legal dispute over control of the project.The founder's mother, Kathleen Allman, has sued acting CEO Ian De Bode, accusing him of attempting to seize control of the company and secure a compensation package worth approximately $11 million for himself.Nathan Allman's half-sister and Ondo investor David Chen are seeking a limited guardianship over Kathleen Allman's portion of the estate, citing concerns including cognitive impairment and financial mismanagement; Kathleen Allman denies the allegations. (CoinDesk)

Odaily News: Flamingo Finance suffered an attack. The attacker borrowed approximately $18 million in USDT via a Morpho flash loan, staked Curve USDP LP into Strategy during the transaction to inflate the VaultYUSDT share price, then redeemed liquidity aUSDT, profiting approximately $345,900 in USDT.

Odaily News - Renzo Protocol has rebranded to Renzo Finance and expanded into the field of on-chain structured yield products, with its first product, Renzo Basis, now live on Hyperliquid. This product automates basis trading strategies by simultaneously holding both spot long positions and perpetual contract short positions, allowing users to earn returns through funding rates. It initially supports BTC and HYPE, with plans to expand to all assets that have both spot and perpetual markets on Hyperliquid. Renzo founder Lucas Kozinski stated that Renzo Basis is fully on-chain, self-custodial, and customizable, enabling users to independently choose their assets and risk parameters.

Odaily News: The decentralized lending protocol Secured Finance's lending market was attacked on September 5, resulting in a loss of approximately $104,000. The root cause was that collateral was priced based on the average execution price of the order book for the current block, allowing attackers to influence the price through self-trading, causing fraudulent lending positions to be counted as valid collateral. The attacker initially deployed the contract but did not execute immediately, then used flash loans and self-trading to inflate the price and withdraw USDC. The original attacking wallet was rolled back due to insufficient gas fees; approximately 48 seconds later, the general-purpose sandwich bot coffeebabe took about 0.9 WBTC, worth approximately $72,000, and transferred about 28.8 ETH of it to the ultra sound money builder, keeping only about $29 for itself. Subsequently, another bot took part of the USDC.

Odaily News DeFi risk management protocol Cozy Finance is currently facing an ongoing attack on its Optimism deployment, with attackers having stolen approximately $170,000 in assets so far. Blockaid has subsequently released preliminary attack information and flagged the attacking transactions along with related attacker addresses. Multiple attacker addresses have now been confirmed, along with a token address suspected to have been exploited in the attack. It remains unclear whether the attack is still ongoing, and users should exercise caution when interacting with contracts associated with Cozy Finance.

Odaily News: According to SlowMist's monitoring, two attackers have been detected replicating the recent Notional Finance vulnerability exploit technique on the BSC chain. The attackers have completed preliminary preparations and created malicious fCash positions using the same vulnerability pattern. At present, the attack has not been fully executed, and the malicious positions are awaiting expiration. Once expired, the attackers may settle the positions and withdraw assets from the protocol. SlowMist recommends that affected projects take immediate mitigation measures and complete protection before the positions expire.

Odaily News: Decentralized lending protocol Pencil Finance has completed the fundraising, disbursement, repayment tracking, and fund return of a $1 million student loan portfolio entirely on-chain, constituting a full financing and repayment cycle. Animoca Brands, Open Campus, and NewCampus provided funding for this portfolio in July 2025.Education financing company ErudiFi disbursed the majority of funds through student loans and tuition financing in Southeast Asia, covering markets such as Indonesia and the Philippines. The portfolio ran for 12 months, supporting more than 6,600 students across 118 schools and universities, with approximately 1,050 students receiving funding directly attributable to Pencil Finance.Investors were split into senior and subordinated tranches — the former receiving fixed returns with priority repayment rights, while the latter earned variable returns and bore the first losses from defaults. Pencil Finance claims this is the first fully on-chain student loan cycle, but did not disclose interest rates, investor yields, default rates, or blockchain transaction records. (Decrypt)

Odaily Planet Daily reported that Ondo Finance announced that starting from September 8, it will cease minting USDY on the Aptos and Noble networks, while USDY on other supported networks will remain unaffected. Since USDY on Osmosis and Mantra is bridged from Noble via IBC, relevant holders will also be impacted. USDY will always maintain full reserve backing. Holders of 1,000 USDY or more can bridge to other supported networks or redeem directly at net asset value on Ondo, with the window period lasting until September 8, 2027.

Odaily reports that the stolen funds from Notional Finance's custody contract include approximately $1.7 million in DAI and USDC, which the attacker subsequently converted into 689.2 ETH and deposited into the Tornado Cash mixing protocol.

Odaily News Student loan real-world asset (RWA) protocol Pencil Finance has completed its first fully on-chain student loan cycle, deploying $1 million in capital to provide financing for approximately 6,600 students across Southeast Asia. After borrowers repay their funds, capital providers receive both principal and returns.The financing portfolio was funded in July 2025 by Animoca Brands, Open Campus, and New Campus, and is structured into senior tranches with fixed returns, as well as junior tranches that carry floating yields and bear first-loss risk. The loans cover 118 schools and universities across Southeast Asia, with approximately 1,050 students receiving direct funding. Among borrowers, women account for 50%, and 93% come from low-income families. (Cointelegraph)