UwU Lend Suffers Second Exploit In One Week, Bringing Losses To $23 Million

The protocol lost an additional $3.72 million after getting hacked for the second time in three days.

By: Mehab Qureshi Loading...

UwU Lend Suffers Second Exploit In One Week, Bringing Losses To $23 Million

UwU Lend, an Ethereum-based lending and liquidity protocol, has suffered its second exploit in a single week.

On June 13, UwU Lend was hacked for $3.72 million. The incident came just a few days after UwU Lend suffered an exploit worth $19.3 million on June 10.

The latest hack was identified by Slowmist, a blockchain security firm. Slowmist shared a screenshot of on-chain data from EtherScan showing that a single wallet made off with multiple tokens from UwU Lend including Wrapped Ether WETH and stablecoins DAI, USDC, LUSD, and FRAX.

The price of UWU, UwU Lend’s governance token, is down 14.5% over the past seven days amid the turmoil, according to CoinGecko. The token has shed 81% of its value down to a $26 million market cap in the past year.

UwU Lend is a decentralized money market protocol that allows users to earn interest on deposits or borrow digital assets.

Previous Attack

UwU Lend was already reeling after losing nearly $20 million in a June 10 exploit.

The incident was identified by Cyvers Alerts, an on-chain security firm, which first spotted the hack. Cyvers told The Defiant that the attacker took advantage of flawed oracle price data for five stablecoins.

The exploit spanned two attacks, with the hackers initially making off with $14 million, before draining an additional $6 million one hour later.

Data from DefiLlama shows that it currently holds $66 million in total value locked (TVL), marking a nearly 50% decline from its peak of $115 million in late April.

The protocol was founded by Sifu, the controversial former CFO of Frog Nation who was later outed as a co-founder of QuadrigaCX, the defunct Canadian centralized crypto exchange. QuadrigaCX collapsed in 2019 after losing $190 million in customer funds.