Web3 lending app and yield aggregator Wise Lending suffered a significant loss of 170 Ether (ETH), valued at $440,000, in an apparent exploit on January 12. The attacker is suspected to have manipulated an oracle price via a flash loan to execute the exploit. The attack occurred at 07:29 pm UTC, with the perpetrator using an unverified contract with an address ending in d82c to drain the funds.

Several tokens were transferred into this contract, including $9,000 worth of USD Coin (USDC), $2,000 worth of Tether (USDT), $5,000 worth of DAI, 18.51 Wrapped Ether (WETH) valued at $47.694, and a variety of Pendle Finance associated tokens. As part of the exploit, the attacker borrowed 1,110 Lido Staked Ether (stETH) tokens, worth $2.9 million, from the AAVE lending protocol. Flash loans are frequently used by exploiters to manipulate oracle prices.

Pseudonymous blockchain security researcher Spreek alerted the crypto community about the attack, stating, “Looks like Wise Lending exploited for ~170 eth.” Spreek speculated in a subsequent post that the vulnerability might be linked to a new Pendle Finance derivative token. Another security researcher, Officer’s Notes, echoed the sentiment, commenting “Another day, another exploit.” According to Officer’s Notes, the vulnerability might have been triggered by a 7% price swing between stETH and Ether (ETH) within a specific pool, due to an “AAVE v2 stETH flashloan.”

Despite the year 2024 just beginning, decentralized finance (DeFi) protocols have already lost at least $5 million through exploits. On January 3, Radiant Capital was hit for over $4.5 million. The next day, liquidity manager Gamma Protocol lost over $400,000 in an exploit. In 2023, more than $1.8 billion was lost due to crypto hacks, scams, and exploits, as reported by blockchain security platform Certik.

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, AAVE lending protocol, Pendle Finance, Radiant Capital, Wise Lending
Currencies US Dollar, Bridged Wrapped Ether, Lido Staked Ether, Tether, Dai
Securities None

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