The decentralized finance (DeFi) lending protocol UwU Lend has been compromised, resulting in a considerable loss of roughly $19.3 million in digital belongings.
This occasion is the most recent in an extended sequence of incidents which have raised additional questions on the safety of DeFi platforms.
UwU Lend Protocol Drained of $19.3M
As per the reviews from the main blockchain safety corporations akin to Arkham and Cyver, the assault was a swift one the place the hacker made three transactions inside six minutes.
According to Arkham, the lending protocol UwU Lend launched by Frog Nation’s former CFO 0xSifu is suspected to have been attacked. The protocol could have loopholes, and $19.3 million of funds have been abnormally outflowed. The mission is a fork of Aave and helps the lending of…
— Wu Blockchain (@WuBlockchain) June 10, 2024
The safety breach was first detected by Cyvers on their X platform, elevating an alarm for UwU Lend on the actions that resulted within the unauthorized switch of funds.
“The UwU lending contract was hacked and the attacker was able to steal substantial sums of funds from the liquidity pools, ” mentioned Meir Dolev, co-founder of Cyvers.
The stolen funds, which included the most important cryptocurrencies akin to WBTC and stablecoins, had been rapidly liquidated on the Uniswap trade, making it tough for the stolen belongings to be tracked.
Security Measures and Industry Reaction
This exploit is part of a rising concern inside the crypto area as DeFi platforms proceed to fall sufferer to hacks. This has led to a reassessment of the safety measures which might be in place inside the crypto area because of the repeated incidence of these incidents.
Some of the measures that consultants suggest embody correct real-time monitoring and adoption of tight safety measures to guard customers’ belongings.
In addition, the incident highlights the need of the DeFi platforms’ interplay with their customers to share the data promptly when such actions happen for the aim of credibility.
Hacks Preceding the UwU Lend Hack
The UwU Lend hack is one other assault within the crypto world this 12 months alongside different hacks such because the one which occurred at DMM Bitcoin, a Japanese cryptocurrency trade.
The DMM Bitcoin trade was hacked final week, and the trade has acknowledged that it’ll purchase greater than 4,500 BTC to compensate the affected customers.
These again to again incidents level to the truth that there are nonetheless weaknesses within the cryptocurenncy exchanges and DeFi platforms and the necessity for stronger measures to handle the problem.
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