In the ever-evolving landscape of decentralized finance (DeFi), Wise Lending grappled with a substantial exploit last Friday, marking the latest breach in the decentralized financial realm. Blockchain security and data analytics company PeckShield Inc. disclosed that Wise may have incurred a substantial loss, estimated at around 177 ETH, equivalent to a staggering $464,000 at current market prices.
An initial investigation by PeckShield unveiled that the exploit stemmed from a flaw in Wise Lending’s share accounting logic. This flaw, intricately linked to a precision issue, facilitated the siphoning of market funds, according to the security firm’s findings. As of the time of reporting, Wise Lending had not responded to the incident.
The modus operandi of the attackers involved manipulating a nearly depleted market, PLP-stETH-Dec2025. By artificially inflating the share price through this manipulation, the attackers borrowed significant funds from the lending markets, leaving Wise Lending vulnerable to exploitation.
CertiK Raises Alarm on DeFi Vulnerability
Adding to the concerns surrounding DeFi security, CertiK, a prominent player in blockchain security, flagged the incident. They revealed that the exploit unfolded through a malicious flash loan, with the stolen funds traced back to an externally owned account (EOA). This incident has heightened worries about the susceptibility of such platforms to sophisticated attacks, emphasizing the pressing need for enhanced security measures as we venture further into 2024.
This breach follows closely on the heels of Radiant Capital, a cross-chain lending protocol, succumbing to a compromise just last week. The incident led to the theft of 1900 ETH, amounting to approximately $4.5 million. In response, Radiant reportedly halted all lending and borrowing activities.
DeFi has witnessed security breaches in the past year, including notable cases like Onyx Protocol and Euler Finance. Onyx Protocol fell victim to a flash loan exploit, resulting in a $2 million loss, while Euler Finance suffered a staggering drain of $197 million. These repeated incidents underscore the imperative for bolstered security measures within the DeFi industry to safeguard investors’ assets and uphold trust in decentralized financial systems.