Blockchain safety agency Cyvers Alert reported a big exploit on the DeFi lending protocol UwU Lend, which resulted in an roughly $19.5 million loss.
The attacker funded their pockets through the sanctioned crypto mixer Twister Money.
Cyvers co-founder and CTO Meir Dolev informed crypto-news in a June 10 assertion:
“The UWU lending contract was exploited by an attacker that executed three transactions in six minutes and drained roughly $20 million.”
On-chain knowledge reveals that the attacker’s pockets moved a number of digital property, together with wrapped Ethereum (WETH), wrapped Bitcoin (WBTC), and stablecoins like USDC. The attacker’s tackle has been tagged because the UwU Lend Exploiter on Etherscan.
Web3 safety agency PeckShield additional corroborated the incident, including that the foundation explanation for the assault was a value oracle situation. It mentioned:
“Specifically, the sUSDe asset is priced as median from a number of sources. 5 of them, i.e., FRAXUSDe, USDeUSDC, USDeDAI, USDecrvUSD, and GHOUSDe, had been manipulated in the course of the hack.”
In the meantime, UwU Lend confirmed the incident and instantly paused its platform. The protocol mentioned:
“[We are] taking all mandatory steps [and] doing our greatest right here. Keep tuned for additional updates.”
TVL surge?
Regardless of the exploit, the entire worth of property locked on the DeFi protocol UwU Lend surged by 135% within the final 24 hours.
Information from DeFiLlama reveals that UwU Lend at present holds over 82,000 ETH, valued at $305 million. Nevertheless, roughly $247 million of those funds are borrowed.
UwU Lend was developed by Michael Patryn — also referred to as Sifu or 0xSifu — the controversial founding father of the defunct Quadriga CX change. The platform permits depositors to offer liquidity to earn passive earnings, whereas debtors can acquire liquidity in an over-collateralized method. Moreover, liquidity suppliers provide liquidity and earn income by staking their LP tokens.
