UwU Lend, a lending and liquidity protocol, has reportedly been targeted by an exploit amounting to $19.3 million. 

A malicious hack recently targeted the decentralized lending platform. Reports from the blockchain security firm Arkham indicate that unknown perpetrators stole $19.3 million from the lending protocol.

The incident highlights ongoing security vulnerabilities in the DeFi sector, raising concerns about the safety of digital assets on decentralized platforms.

The hack

The blockchain data indicates that the perpetrator transferred the stolen funds through multiple wallet addresses. According to a crypto user on the blockchain explorer Etherscan, the perpetrator utilized Curve LlamaLend as the “exit liquidity” for the attack.

On-chain data shows that one wallet siphoned a collection of tokens, including wrapped ether (WETH), wrapped bitcoin (WBTC) and stablecoins, before trading the majority of it out on Uniswap.

UwU Lend claims to have never been hacked since its inception in 2022 but they posted on X stating that “The protocol was paused a little under an hour ago while the team investigates the situation. Please rest assured that we were made aware of the situation immediately and are taking all necessary steps, doing our best here. Stay tuned for further updates.” 

UwU Lend is based on the open-source AAVE v2 codes and offers lending, borrowing, and staking services. Users receive 100% of platform revenues in the form of a token called UwU.