Cyvers Alert is a Blockchain Security Firm reported A significant exploit of the DeFi Lending Protocol UwU Lend resulted to a loss of approximately $19.5 Million.
The attacker deposited money into their account via the crypto mixer Tornado Cash.
Meir Dolev, Cyvers’ co-founder and chief technology officer (CTO), told CryptoSlate In a statement dated June 10,
“The UWU lending contract was exploited by an attacker that executed three transactions in six minutes and drained approximately $20 million.”
On-chain data The wallet of the attacker moved several digital currencies, including wrapped Ethereum(WETH), wrap Bitcoin (WBTC), as well as stablecoins such USDC. Etherscan has identified the attacker as UwU Lend Exploiter.
PeckShield of Web3 Security confirmed this incident. They added that the main cause was an issue with the Price Oracle. It stated:
“In particular, the sUSDe asset is priced as median from multiple sources. Five of them, i.e., FRAXUSDe, USDeUSDC, USDeDAI, USDecrvUSD, and GHOUSDe, were manipulated during the hack.”
UwU Lend, meanwhile, confirmed the incident. It immediately stopped its platform. Protocol said:
“[We are] taking all necessary steps [and] doing our best here. Stay tuned for further updates.”
TVL surge?
In the last day, assets on UwU’s DeFi protocol have increased in value by 135%.
Data DeFiLlama data shows UwU Lend holds more than 82,000 UwU Lend accounts. ETHThe total value of the fund is $305,000,000. About $247 millions of this money is borrowed.
UwU Lend has been developed by Michael Patryn — also known as Sifu or 0xSifu — the controversial founder of the defunct Quadriga CX exchange. Platform allows depositors earn passive revenue by providing liquidity while borrowing liquidity. Additionally, by staking LP tokens to earn revenue from liquidity providers who supply liquidity.
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Source: cryptoslate.com