Blockchain safety agency Cyvers Alert reported a major exploit on the DeFi lending protocol UwU Lend, which resulted in an roughly $19.5 million loss.
The attacker funded their pockets by way of the sanctioned crypto mixer Twister Money.
Cyvers co-founder and CTO Meir Dolev informed CryptoSlate 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 information reveals that the attacker’s pockets moved a number of digital belongings, together with wrapped Ethereum (WETH), wrapped Bitcoin (WBTC), and stablecoins like USDC. The attacker’s handle has been tagged because the UwU Lend Exploiter on Etherscan.
Web3 safety agency PeckShield additional corroborated the incident, including that the basis reason behind the assault was a value oracle difficulty. It mentioned:
“Particularly, the sUSDe asset is priced as median from a number of sources. 5 of them, i.e., FRAXUSDe, USDeUSDC, USDeDAI, USDecrvUSD, and GHOUSDe, have been manipulated throughout 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 overall worth of belongings locked on the DeFi protocol UwU Lend surged by 135% within the final 24 hours.
Knowledge from DeFiLlama reveals that UwU Lend at the moment holds over 82,000 ETH, valued at $305 million. Nonetheless, roughly $247 million of those funds are borrowed.
UwU Lend was developed by Michael Patryn — also called Sifu or 0xSifu — the controversial founding father of the defunct Quadriga CX alternate. The platform permits depositors to offer liquidity to earn passive earnings, whereas debtors can get hold of liquidity in an over-collateralized method. Moreover, liquidity suppliers provide liquidity and earn income by staking their LP tokens.
