Blueberry DeFi Protocol Halts Lending Services Following $1.3M Exploit

Blueberry Protocol Suffers Exploit

Blueberry, a decentralized lending market, recently experienced an exploitation incident resulting in the draining of over $1.3 million worth of Ether from its protocol. The exploit prompted the protocol to suspend its lending services and take immediate action.

Details of the Exploit

According to a post by the Blueberry Protocol Foundation, the exploit led to the draining of funds, which were front run by @coffeebabe_eth and subsequently secured in the Blueberry multisig, with the exception of the validator payment.

Impact of the Attack

Following the exploit, users reported difficulties with fund withdrawals, and the protocol’s front end also experienced downtime. Despite these challenges, Blueberry successfully suspended the protocol and restored its website to full operation.

Recovery Efforts

In an update, the Blueberry Protocol Foundation announced that white hat hacker c0ffeebabe.eth had retrieved and returned a significant portion of the drained funds back to the multisig wallet, ensuring the safety of deposited funds for users. The protocol is currently focused on resolving any outstanding issues and aims for a full repayment to affected users.

The Blueberry Protocol and Its Security Measures

The Blueberry Protocol is designed to facilitate decentralized lending and leveraged borrowing, with a collateral value leverage of up to 20 times. Despite the recent incident, the protocol had a total value locked (TVL) of $4.5 million before the exploit, showcasing its significance within the DeFi landscape. Blueberry emphasizes a security-first approach, as evident from their security overview and independent token security audits by Hacken and Sherlock.

However, it’s worth noting that the tweet promoting the security review is no longer visible on Blueberry’s X feed, calling into question the visibility of the protocol’s security measures.