The assault concerned three transactions that transformed Wrapped Bitcoin and DAI into ETH.
Ethereum-based lending protocol Uwulend has been exploited to the tune of $20 million.
Cyvers Alerts detected the malicious conduct early Monday morning. An attacker executed three transactions that transformed WBTC and DAI into Ether.
The Uwulend staff knowledgeable their customers through X that the platform has been paused whereas they examine the state of affairs.
The pockets tackle linked to the Uwulend exploiter holds a whopping 1,282 ETH or $4.7 million.
Notably, the UWU token didn’t react violently to the information. UWU dropped 3% to $2.91, which solely provides to its general downtrend. Over the previous yr, the token has shed 80% of its worth and showcases a $26 million market capitalization, as per information from CoinGecko.
Cyvers Alerts staff members informed The Defiant that the attacker funded as we speak’s exploit with property withdrawn from cryptocurrency mixer Twister Money two days in the past.
Additionally they defined that the hack passed off because of a difficulty with a worth oracle throughout 5 completely different tokens. “Specifically, the sUSDe asset’s value is determined using a median from several sources,” Cyvers Alerts stated. Throughout the hack, 5 of those sources—FRAXUSDe, USDeUSDC, USDeDAI, USDecrvUSD, and GHOUSDe had been manipulated.
Uwulend touts itself as a decentralized non-custodial liquidity market protocol, and its web site reveals that the protocol has generated greater than $9.3 million in charges. In accordance with DefiLlama, it has $66 million in complete worth locked (TVL), which represents a close to 50% drop from its late April peak of $115 million.
The protocol was created by Sifu, the controversial co-founder of the now-defunct crypto alternate QuadrigaX. QuadrigaX is a Canadian firm that went below in 2019 after mysteriously shedding $190 million in buyer funds.
Sifu is but to make any public announcement concerning Uwulend’s exploit.
