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DeFi protocol Pendle has officially denied reports of a hack circulating on September 30th. While a specific whale wallet was compromised, the protocol's smart contracts remain operational, and user funds are secure. The exploiter allegedly minted and sold Pendle's PT and YT tokens for Ethereum.
Key Takeaways
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Pendle's core smart contracts are unaffected and user funds are safe.
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A specific "whale" wallet was targeted, with the exploiter minting and selling PT/YT tokens.
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The native PENDLE token experienced a temporary price dip but has since recovered.
Clarification on the Incident
Contrary to initial rumors, the Pendle team clarified that the DeFi protocol itself was not hacked. They stated, "Pendle is NOT hacked. All funds are safe." However, they acknowledged that a particular "whale" wallet was drained. The individual behind this compromised wallet then proceeded to mint Pendle's principal tokens (PT) and yield tokens (YT), subsequently selling them on the market, reportedly in exchange for Ethereum.
Market Reaction and Protocol Overview
Following the news of the compromised wallet, the price of Pendle's native token, PENDLE, saw a decline of approximately 10%, dropping from $4.56 to $4.34. As of the latest reporting, the token's price had largely recovered to around $4.55. The Pendle protocol, launched on the Ethereum network in June 2021, specializes in tokenizing assets and managing future yields. It currently boasts a Total Value Locked (TVL) of approximately $6.5 billion, according to DeFi Llama.
Recent DeFi Security Concerns
This incident occurs amidst a period of heightened security awareness in the decentralized finance space. Notably, in late September, the DeFi protocol Hypervault reportedly vanished with $3.6 million in crypto assets, highlighting ongoing vulnerabilities within the sector.
Sources
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The Pendle team denied reports of a hack, ForkLog.
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