Wise Lending, a Web3 lending software and yield aggregator, was reportedly exploited on January 12, losing 170 Ether, currently valued at $440,000. The attacker is believed to have used a flash loan to manipulate the pricing of an Oracle, employing an unverified contract with an address ending in d82c to siphon off the funds.

This contract held a variety of tokens, including USD Coin valued at $9,000, Tether valued at $2,000, Dai valued at $5,000, 18.51 Wrapped Ether (WETH) ($47.694), and numerous tokens associated with Pendle Finance.

In addition to this, the attacker seized 1,110 Lido Staked Ether (stETH) tokens, worth $2.9 million, from the Aave lending protocol. Flash loans are commonly used by fraudsters to manipulate Oracle pricing.

The attack was brought to light by a pseudonymous blockchain security researcher known as Spreek, who suggested that a new Pendle Finance derivative token might be linked to the vulnerability. Another security researcher, Officer’s Notes, remarked, “Another day, another exploit,” when sharing the report. Officer’s Notes suggested that a 7% price swing between stETH and ETH within a certain pool may have contributed to the vulnerability due to the use of an AAVE v2 stETH flash loan.

Decentralized finance (DeFi) procedures have only recently started in 2024, but they have already suffered losses of at least $5 million due to exploits. Radiant Capital was robbed of over $4.5 million on January 3, and the liquidity management Gamma Protocol lost nearly $400,000 due to an exploit the following day.

According to Certik, a blockchain security provider, over $1.8 billion was lost in 2023 due to cryptocurrency hacks, scams, and attacks.

This News Article was automatically generated by Bob the Bot (AI)

Information Details
Geography Global
Sentiment very negative
Relevance Score 1
People None
Companies Gamma Protocol, Certik, Pendle Finance, Radiant Capital, Beaxy, Aave, Wise Lending
Currencies US Dollar, Bridged Wrapped Ether, Lido Staked Ether, Tether, Dai
Securities None

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