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UwU Lend falls prey to $20M flash loans hack, founder launches 20% bounty to retrieve funds in UwU Lend hack | #hacking | #cybersecurity | #infosec | #comptia | #pentest | #hacker


On Monday, UwU Lend was hit by a hack that resulted in the loss of $20 million. The attackers exploited a weakness in the price oracle system, shocking the entire crypto community. They used a huge flash loan to manipulate the protocol’s price feed.

What happens next?

Understanding the Hack

The attacker was able to initiate the attack through a flash loan of $3. 15 billion assets according to CertiK alerts. These assets were strategically split: To establish a leveraged position through recursive debt, half of them were borrowed, and the remaining half affected the value of five oracles and pumped up the sUSDE token. 

The attacker continually liquidated positions to accumulate uWETH tokens. They then restored the prices to normal and repaid the flash loan, making off with about $19.3 million in assets across three transactions. As of now, the hacker’s wallet holds around $19.4 million.

A Familiar Name in the Mix

Michael Patryn, also known as Michael Patryn or 0xSifu, is one of the co-founders of the now-defunct Quadriga CX, directly engaged with the hacker. Patryn even put up the reward of 20% of the stolen assets for their recovery.

“We are giving a 20% white hat bounty of any funds taken. You will have no exposure as to our continuing this and no exposure as to law enforcement matters. ”

This reward is about $4 million, provided the hacker returns the remaining $16 million. While such offers are common in the crypto market, they are rarely accepted by hackers. However, there have been exceptions.

UwU Lend: A Vulnerable Clone

UwU Lend, a lending protocol established in 2022 as a clone of the Aave protocol, was targeted because its price oracles were easy to manipulate. By exploiting this weakness with a flash loan, the hacker managed to drain $20 million from the protocol using a loan that could have reached up to $4 billion.

This incident highlights the vulnerabilities within decentralized finance platforms and the need for stronger security measures to prevent similar attacks in the future.

Also Reda: Orbit Chain Hacked for $48 Million: Here’s What Happened

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