DeFi
UwU Lend suffers second hack in a week, loses $3.7 million
DeFi lending protocol UwU Lend was hacked again today and lost $3. 7 million, according to Block Sec and Beosin, the blockchain security companies. This is the second incident in the same week and both were committed by the same hacker. The stolen assets, now in the form of ether, are now in the possession of the attacker.
Attack details
On June 10, UwU Lend experienced its first exploit, where attackers used flash loans to manipulate the price oracles of the stablecoin sUSDe, resulting in a loss of $20 million. Following this incident, UwU Lend claimed to have identified and resolved the security vulnerability, describing it as unique to the sUSDe market oracle.
Despite these assurances, today’s attack highlights continued security challenges for the protocol. Analysts suggest that the two exploits share similarities, highlighting the involvement of the same perpetrator.
Context and response
UwU Lend was started by Michael Patryn, also known as Omar Dhanani and 0xSifu. Patryn previously co-founded QuadrigaCX, a cryptocurrency trading platform that went bankrupt following fraud.
After the first incident, the UwU Lend platform admitted the incident and said the vulnerability had been closed. However, today’s attack reveals that the protocol’s weaknesses are still present and need to be further addressed.
The recent exploits raise concerns about the security measures in place and the effectiveness of patches implemented after the initial attack.
Additionally, a double impact in one week highlights the need for robust security protocols in decentralized finance platforms to protect user assets and maintain trust in the system.
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