DeFi
DeFi lender UwuLend tapped for $19.4 million
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Just when it seems like the crypto scam ecosystem is softening its influence, decentralized finance (DeFi) lending protocol UwuLend was victim to a major feat.
UwuLend hacking saga
According to information from crypto intelligence service provider CertiK, the protocol’s wallet has been emptied of approximately $19.4 million in blocked funds. Although the details of these exploits are still emerging, UwuLend is believed to have flaws that could have made the exploit possible.
UwuLend is a fork of the Aave protocol that was started by former Frog Nation CFO, 0xSifu. 0xSifu is the pseudonym of Michael Patryn, the co-founder of the defunct Canadian trading platform QuadrigaCx. For those familiar with the connection between Patryn and the currency collapse, a trend now appears to be emerging.
Although Aave has not faced any major related exploits, the UwuLend hack speaks to the fragility of the DeFi security system as a whole. Although the current prognosis remains unknown, there are cases of hacks and refunds in the crypto ecosystem.
When the 2020 Poly Network hack occurred, the team negotiated a refund with the hacker. With over $610 million embezzled by the attacker, the entire saga became a famous Whitehat case when a complete refund stolen money was initiated by the hacker.
Although Poly Network is an outlier in the ecosystem, there are others exploits that resulted in permanent losses.
Be careful
As the UwuLend team and users confront this worrying trend, the warning from various industry leaders is now becoming more resounding. With the prevalence of Deepfake scams and other forms of exploits, the Ripple Labs and Shiba Inu teams are forever known warn their community to prevent anyone from being hurt.
Although the UwuLend exploit cannot be avoided by users or the team, the advice of caution remains the golden rule that investors should follow.
About the Author
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was born when, as a former banker, he discovered the clear advantages of decentralized money over traditional payments. With his extensive experience covering various aspects of Web3, Godfrey’s articles have been featured on Blockchain.news, Cryptonews, and Coingape, among others.