Wise Lending, a leading Web3 lending application and yield aggregator, unexpectedly faced a rapid loan attack that recently resulted in a significant loss of approximately USD 464,000. This incident emerges as a significant crypto hack of 2024 and underscores the vulnerabilities in the decentralized finance (DeFi) sector.
Blockchain security firm PeckShield outlined the attack. A sensitive issue was manipulated, allowing the attacker to strategically drain the platform’s funds.
The perpetrator targeted a nearly empty market within Wise Lending by artificially inflating the share price using a fast loan attack, a tactic often associated with manipulating oracle prices. Seizing the opportunity, the attacker quickly borrowed significant amounts of money from the credit markets, taking advantage of the manipulated conditions.
Wise Lending implemented preventative measures in response to the breach, keeping the wider crypto community closely monitoring developments. This incident in early 2024 is a stark reminder of the challenges in securing DeFi platforms.
