WiseLending, a comprehensive financial services platform in the decentralized finance (DeFi) space, recently fell victim to a price manipulation attack, leading to a substantial loss exceeding $460,000.
Distinguished as a one-stop-shop for DeFi financial services, Wise Lending is dedicated to simplifying yield generation while providing top-tier Annual Percentage Yield (APY) opportunities without compromising decentralization principles. The platform operates as a crypto lending and yield aggregator, emphasizing full decentralization and compliance with the Wise Token ($Wise).
The attack on WiseLending exploited a vulnerability related to the calculation of Shares withdrawals. The protocol employs a rounding-up mechanism in this process, enabling the attacker to repetitively invoke the withdraw function with a unit amount. This manipulation caused a discrepancy between the protocol’s token balance and Shares, allowing the attacker to influence prices.
WiseLending protocol @Wise_Lending
suffered a price manipulation attack, resulting in a loss of over $460k.WiseLending uses rounding up when calculating Shares withdrawals, allowing the attacker to repeatedly call the withdraw function with a unit amount. This caused a… pic.twitter.com/059qjk3SZQ
— Beosin Alert (@BeosinAlert) January 13, 2024
The Wise Token Price Action To Watch
BeosinAlert disclosed that the pilfered funds are presently located in the wallet address 0x592856d68B3FEE1D2dAa34CdC9851f3477C52530.
Concurrently, the Wise Token is grappling with a 5% decline in its market value, coupled with a significant 69% reduction in its daily trading volume. These developments underscore the susceptibility of DeFi platforms to exploits and the subsequent repercussions on associated tokens.
As the WiseLending incident unfolds, the broader DeFi community remains vigilant, emphasizing the importance of robust security measures in decentralized financial ecosystems.
The episode serves as a reminder of the ongoing challenges in maintaining the integrity of DeFi protocols and the imperative for continuous efforts to fortify against potential vulnerabilities.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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Source: https://nulltx.com/wiselending-protocol-faces-price-manipulation-attack-resulting-in-460k-loss/