Ethereum

UwU Lend

DeFi

In an ongoing struggling cryptocurrency market, a recent report by the blockchain security firm CertiK Alert gathered everyone’s attention. Today, on June 10, 2024, CertiK Alert made a post revealing that UwU Lend, a decentralized lending and liquidity protocol, has fallen victim to an exploit resulting in losses of approximately $19.3 million. DeFi lending protocol UwU Lend $19.3 million attack 
Besides CertiK Alert, other blockchain security firms, including Arkham, have confirmed the breach. The incident was directed through price oracle manipulation, a sophisticated method that has once again highlighted vulnerabilities in DeFi protocols.
According to the CertiK Alert post, the attacker began by flash-loaning $3.15 billion in assets, a common technique used to temporarily borrow large sums without collateral. These funds were used to manipulate the price of sUSDE, a synthetic asset, making it appear more valuable than it actually was. Here’s How the attack took place 
The attacker used half of the borrowed assets to create a leveraged position through repetitive borrowing, accumulating massive sUSDE debt in the wallet 0x87ed. The other half of the assets were used to manipulate the prices from five different oracles, artificially inflating the value of sUSDE. This dual strategy of leveraging and price manipulation allowed the attacker to exploit the platform effectively.
After manipulating the prices and liquidating the positions, the attacker reversed the price manipulation and repaid the <a href="https://news.todayq.com/normie-token-crashes-99-post-flash-loan-attack-heres-what-hacker-says/" rel="noopener noreferrer nofollow">flash loan</a>, setting the stage for the next round of transactions. In total, the attacker executed three transactions, netting a total of $19.3 million. These assets were swiftly converted into Ethereum (ETH) and split between two wallets:
<ol class="wp-block-list">
 <li>0x48D7C1dd4214B41EDa3301BCA434348F8d1C5EB6</li>
 <li>0x050c7E9c62Bf991841827F37745DDaDb563FEB70.&nbsp;</li>
</ol>
This exploit has sparked a renewed call for enhanced security measures within the DeFi ecosystem. Blockchain security firm CertiK, among others, is highlighting the need for more robust oracle systems and better safeguards against such manipulations. UwU Lend’s statement following the attack 
Following this attack on the platform, the protocol was paused just under an hour ago. The team assures users that they were alerted to the situation immediately and are taking all necessary steps to address the breach. Additionally, a spokesperson fromUwU Lend stated, “We are doing our best to manage the situation and safeguard user assets.”

DeFi Protocol UwU Lend hit by $19.3 million exploit: Report

Todayq News

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