UwU Lend, a lending and liquidity protocol, has recorded a loss of $19.3 million in a recent exploit. Cyvers alerts alongside other popular blockchain security firms confirmed the attack on Monday. According to on-chain data, a wallet managed to move a host of virtual assets from the protocol in the early hours of Monday.
As revealed, some of the siphoned tokens are wrapped ether (WETH), wrapped bitcoin (WBTC), and many other stablecoins. Further indications revealed that the hackers traded most of the stolen funds on Uniswap. Meanwhile, UwU Lend confirmed the attack in a post on X (formerly X).
In the post, the protocol stated that it has ceased operation due to the ongoing investigation. The protocol further promised to see to the root of the issue as it is taking “all necessary steps” to address the cause of the attack. Also, the protocol added that it will reimburse all affected users following the attack. Additionally, the protocol released a reclaim portal where users can file their reimbursement claims.
It is worth mentioning that UwU Lend is a lending protocol developed by Michael Patryn commonly known as Sifu. Recall that Patryn before the emergence of UwU Lend was under severe scrutiny following the collapse of Quadriga CX. After the project collapsed, in 2022, an address connected to Patryn moved $5.5 million worth of ETH to Tornado Cash. During that period, Patryn was the treasurer of the Wonderland DAO.
Side Note On UwU Lend
Before the attack, UwU lend recently celebrated reaching $9 million generated revenue. In the announcement, the lending platform emphasized its commitment to giving all generated revenue back to the community of stakers. Likewise, in its quarterly report for Q1, UwU Lend stated that it has recorded tremendous growth as generated revenue keeps exceeding its expenses.
In the report, the lending platform provided insights into how it has incorporated new markets while improving its staking reward system. As revealed, the staking feature came with points and ranking systems. Similarly, UwU Lend explained how it carried out numerous updates to enhance its protocol behind the scenes.
According to DefiLlama, UwU Lend has a total value locked (TVL) worth $58.12 million. The native token of the protocol UWU has plummeted as a result of the attack. Presently trading at $2.90, UWU has been down by 2.93% in the last 24 hours.
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