In a surprising turn of events, SwirlLend, a prominent DeFi lending protocol, has fallen victim to a devastating rug pull on the Coinbase Layer 2 BASE chain. The incident has left investors reeling in the wake of BASE’s highly publicized mainnet launch and subsequent traction in the market. This alarming occurrence underscores the vulnerability of decentralized financial platforms and the challenges they face in maintaining the security of user assets.
According to a recent report, Coinbase’s Layer 2 BASE chain was rocked by another rug pull involving the meme coin BALD and its associated liquidity pool on the DEX LeetSwap, which operates on the BASE chain. The exploit led to significant losses for users who had bridged their assets to the BALD liquidity pool. This incident has been a dark cloud hanging over BASE’s otherwise successful journey.
BASE Platform Rattles DeFi Landscape
The recent rug pull on SwirlLend has added another concern to the DeFi ecosystem. Blockchain security experts PeckShield, a renowned cybersecurity firm, have confirmed the rug pull’s occurrence and reported a staggering drop in the total locked value on SwirlLend’s platform. The assets, once valued at $784,300, have plummeted to a mere $49,200. This drastic reduction highlights the extent of the exploit’s impact on the platform and its users.
The exploit’s orchestrator has also bridged many Ether and USDC tokens, further exacerbating the losses. The withdrawal of 140.68 ETH and 32,600 USDC tokens, along with the retention of 92 ETH on the BASE chain, has left investors in a dire predicament.
Investors seeking redress are frustrated, as the exploiter has taken swift action to erase SwirlLend’s presence from social media platforms, including X, formerly known as Twitter. The project’s accounts on platforms like Telegram, Discord, and GitHub have been purged, and even the project’s website has been taken down. This deliberate effort to cut off all means of communication with the exploiter has left investors helpless.
SwirlLend’s fall from grace serves as a sobering reminder of the risks inherent in decentralized finance. As the crypto community grapples with these challenges, it is evident that more stringent security measures and investor education are essential to prevent such rug pulls from recurring.
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