UwU Lend suffers 20M hack in surprising Price Oracle Attack Reward announced
Key Points
– UwU Lend was the victim of a $20 million hack where hackers exploited a vulnerability in the price feed using a massive flash loan.
– The attacker borrowed billions, manipulated prices, and drained funds before returning the loan.
– The founder offered a 20% reward to the hacker in an attempt to recover the stolen funds.
A recent cyber attack on UwU Lend resulted in a staggering $20 million loss on Monday. The hackers took advantage of a flaw in the price oracle system, causing shockwaves in the cryptocurrency community. They utilized a significant flash loan to tamper with the protocol’s price feed.
The Attack Unveiled
The assailant executed the hack by securing a flash loan of $3.15 billion in assets, as reported by CertiK alerts. These assets were strategically divided: half were borrowed to establish a leveraged position through recursive debt, while the remaining half influenced the value of five oracles and inflated the sUSDE token.
The attacker systematically liquidated positions to amass uWETH tokens, then restored prices to their original state and repaid the flash loan, walking away with approximately $19.3 million across three transactions. Presently, the hacker’s wallet contains around $19.4 million.
A Familiar Figure Emerges
Michael Patryn, also known as Michael Patryn or 0xSifu, a co-founder of the now-defunct Quadriga CX, has direct ties to the hacker. Patryn even offered a 20% reward of the stolen assets for their retrieval.
In a statement, Patryn mentioned, “We are offering a 20% white hat bounty for any funds retrieved. Your involvement will remain confidential, and legal matters will not be pursued.”
UwU Lend: An Easy Target
Established in 2022 as a replica of the Aave protocol, UwU Lend became a prime target due to its easily manipulated price oracles. By exploiting this vulnerability with a flash loan, the hacker siphoned $20 million from the protocol, utilizing a loan potentially totaling up to $4 billion.
This incident sheds light on the susceptibilities within decentralized finance platforms, emphasizing the urgency for enhanced security measures to avert similar breaches in the future.