Key points:
- The UwU Lend hack stemmed from the manipulation of assets in its price oracle, compromising the integrity of the platform.
- Five assets, including FRAXUSDe and USDecrvUSD, were tampered with in the attack.
- UwU Lend is rapidly investigating and improving security measures to prevent future breaches.
The UwU Lend hack was possible due to a root problem in its price oracle. This hack tainted the platform and specifically referred to the manipulation of particular assets used to set sUSDe prices.
UwU Lend uses a price oracle system that works by averaging the value of sUSDe assets, calculated using median prices collected from different sources. Five of these sources appear to have been tampered with in the hack.
Today’s @UwU_Lend hack leads to $19.4 million loss.
The root cause is a price oracle problem. Notably, the sUSDe asset price is rated as median by multiple sources. Five of them, namely FRAXUSDe, USDeUSDC, USDeDAI, USDecrvUSD and GHOUSDe, were manipulated during the hack.
The stolen… https://t.co/4ec92zxoql pic.twitter.com/xuGGegfDpV
— PeckShield Inc. (@peckshield) June 10, 2024
In this particular case, there were five assets whose prices were tampered with: FRAXUSDe, USDeUSDC, USDeDAI, USDecrvUSD, and GHOUSDe. These are key assets in determining various pricing structures in the UwU Lend ecosystem. The attackers managed to manipulate the data reflecting the prices of these assets and exploit the vulnerability of the ecosystem to launch malicious attacks.
Read more: UwU Lend exploit causes platform to lose nearly $20 million
Oracle Price Manipulation Exposed in UwU Lend Hack
The manipulation of these key assets stems from the operation of the UwU Lend hack platform, because from there they manipulated key price data and opened a Pandora’s box on the likelihood of attacks on DeFi systems. It has raised serious concerns about the credibility and integrity of price oracles in these systems.
UwU Lend hack took timely measures to resolve the issue and reduce the potential risks faced by its users. The platform works closely with the security agencies and authorities concerned to conduct a follow-up investigation into the matter and ensure that measures are taken to curb such occurrences in the future.
While this obviously did not restore confidence in UwU Lend and perhaps DeFi in general, it was also, at the same time, a powerful reminder of the risks and difficulties involved in decentralized finance. As the industry grows, this presents a need to ensure that platforms continue to be secure and transparent enough to ensure the safety of user funds and the integrity of the ecosystem.
