In a bid to mitigate potential damage from an ongoing exploit, decentralized finance (DeFi) protocol Blueberry has taken swift action to pause its operations. The Blueberry Protocol Foundation, in a post on X dated February 23, alerted users to the ongoing exploit and urged them to withdraw their funds from Blueberry lending markets.
Amidst the exploit, users encountered difficulties withdrawing their funds, compounded by the temporary unavailability of the Blueberry website and app. The protocol team swiftly worked to address the situation, managing to pause the protocol and restore functionality to the website and app.
Despite initial concerns, the Blueberry team confirmed that the drained funds had been front-run by a party known as c0ffeebabe.eth and subsequently returned to the Blueberry multisig wallet. While a portion of the funds was lost, efforts to repay affected users are underway, with the protocol currently paused to prevent further risks.
Blueberry Protocol is a decentralized lending market facilitating leveraged borrowing up to 20x of the collateral value. Initially boasting a Total Value Locked (TVL) of $4.5 million, the protocol’s TVL experienced a decline to $3.15 million following the exploit attempt.
The involvement of c0ffeebabe.eth in the incident is notable, given her previous intervention in a DeFi hack. However, the exploit raises questions about Blueberry’s security measures despite claims of a “security-first approach” and audits by reputable firms such as Hacken and Sherlock.
As the DeFi ecosystem grapples with the aftermath of yet another exploit, the incident underscores the importance of robust security measures and continuous vigilance in the DeFi space. Blueberry’s response to the exploit and efforts to rectify the situation will be closely monitored by the community as the protocol seeks to regain trust and stability.
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