- Pendle secured $105 million after a Penpie hack.
- Attacker exploited $27 million; funds converted into 11,109 ETH.
Pendle, a well-known decentralized finance (DeFi) protocol, has announced that it successfully safeguarded around $105 million in funds following a recent cyber attack on Penpie, a yield optimization tool within the Pendle ecosystem. The incident occurred on Tuesday, targeting Penpie’s protocol and raising significant security concerns.
According to a post-attack report released early Wednesday, Pendle acted swiftly to contain the damage. The protocol’s contracts were paused immediately, preventing further exploitation.
Despite these efforts, the attacker succeeded in exploiting Penpie’s protocol, resulting in the theft of approximately $27.3 million. Lookonchain reported that the stolen assets were converted into 11,109 ETH. And, PeckShield, a blockchain security company, identified the exploit as a result of a malicious contract designed to artificially inflate staking balances on Penpie. It allowed the attacker to claim undue rewards.
Meanwhile, “Due to the rapid and coordinated response from multiple parties, additional breaches were averted, and Pendle’s contracts have been reactivated,” Pendle stated on X. The platform assured users that their funds are safe and unaffected, highlighting its ongoing dedication to security.
Expanded Information
Pendle explained that the vulnerability was related to a feature enabling open market listings on Penpie. Although Pendle’s monitoring system detected the suspicious contract, which was funded through Tornado Cash, it could not prevent the initial breach.
Penpie, which remains inactive, has proposed negotiating with the attacker. The offer includes immunity from legal action, and confidentiality regarding the attacker’s identity. And a bounty reward as an incentive for returning the stolen funds.
Following the incident, PENDLE has experienced a 10% decline in value over the past 24 hours. The market cap and trading volume also down by 10% and 5%, respectively.
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