On September 2, 2024, Pythia Finance's algorithmic stablecoin protocol was exploited for approximately $53,000 via a reentrancy vulnerability in the claim rewards function. The attacker repeatedly called the function without allowing reward balances to update between calls, extracting unauthorized rewards.

The decentralized algorithmic stablecoin protocol Pythia was attacked due to a vulnerability in its staking contract, resulting in a loss of 21 ETH (approximately $53,000).