DeFi Protocol UwU Lend Reportedly Exploited for $19.5M

Decentralized finance (DeFi) protocol UwU Lend has reportedly been exploited, resulting in a loss of around $19.5 million on Monday, 10, 2024.

According to security firm Cyvers, the attackers executed three transactions in six minutes to siphon the $19.5 million from the platform’s liquidity pools. On-chain analyst Arkham Intelligence also confirmed the incident.

What is UwU Lend?

UwU Lend is a fork of the popular DeFi protocol Aave. The protocol allows users to borrow and lend various cryptocurrencies, including algorithmic stablecoin MIM. 

On-chain analysis shows that the cryptocurrency stolen from the protocol includes wrapped bitcoin (WBTC) and DAI. Moreover, the attackers swiftly swapped the stolen WBTC and DAI for Ether (ETH). According to Cyvers, the attacker was funded by Tornado Cash two days ago.

While a detailed analysis of the exploit remains scarce at the time of filing this report, UwU Lend’s team confirmed the incident a few hours after the attack.

The team stated that services are temporarily paused while they investigate the situation. 

Price Remains Constant 

Surprisingly, the price of UWU, the protocol’s native token, remains constant despite the attack. Data from CoinMarketcap shows that the token is currently hovering around $2.90. 

Meanwhile, the latest incident further highlights the growing security challenges faced by DeFi protocols in recent years. Last month, CioinTab reported that DeFi lender Sonne Finance suffered an exploit with the attackers stealing nearly $20 million in cryptocurrencies, including VELO, ETH, and USDC.

Also, that same month, another DeFi platform, ALEX, was exploited for approximately $4 million in crypto assets, including BTCB and SKO.

According to a report by on-chain security platform Immunefi, attackers stole over $336 million from crypto projects during the first quarter of this year.