SwirlLend, a lending protocol primarily based on Layer 2 networks Base and Linea, has seemingly executed a rug pull, disappearing with an estimated $460,000 in consumer funds. Based on reviews, the challenge developer drained $290,000 from Base and $170,000 from Linea.
This incident is the second important exit rip-off executed on the Base community in latest weeks, with an analogous incidence involving the Bald meme coin.
BALD, a meme coin impressed by Brian Armstrong, noticed its worth plummet from over $85 million to almost zero after the unidentified developer eliminated liquidity from its most important pool.
SwirlLend Lending Protocol Has Been Rugged, PeckShield Confirms
On Wednesday, August 16, blockchain safety agency PeckShield confirmed – through a submit on X (previously Twitter) – that the workforce behind the SwirlLend protocol executed an exit rip-off, making away with roughly $290,000 in consumer deposits on Base.
PeckShield’s on-chain evaluation reveals the protocol’s developer bridged about $289,500 price of Ether and USDC tokens from Base to Ethereum, and the deployer reportedly has about 92ETH of the loot left on Base.
Barely minutes later, PeckShield posted an replace, stating that SwirlLend has additionally been rugged on the Linea chain. Based on the safety agency, the protocol’s deployer bridged about $170,000 price of ETH from Linea to the Ethereum community through Orbiter Finance.
The overall worth locked (TVL) on the SwirlLend protocol has collapsed from practically $770,000 to a mere $49.21, in accordance with information from DefiLlama.
Supply: DefiLlama
As of this writing, SwirlLend’s digital presence seems to have been erased, as its social media platforms on X and Telegram have been deactivated. In the meantime, the lending protocol’s official web site stays inaccessible.
One other Setback For Base?
Base, an Ethereum Layer 2 community constructed by distinguished crypto change Coinbase, has been within the headlines for all types of causes in latest weeks.
Sadly, the community has seemingly developed a detrimental popularity after a collection of exploits and exit scams. Moreover the BALD rug pull and this newest exit rip-off, Base has additionally seen some tasks on its community endure important exploits.
As an example, RocketSwap just lately fell sufferer to a “brute power hack”, which noticed $860,000 of customers’ funds stolen from the protocol. Based on numerous safety corporations, the assault was potential as a result of compromise of the protocol’s personal keys.
In an analogous state of affairs, decentralized change LeetSwap noticed its liquidity swimming pools exploited for $626,000 price of crypto belongings, resulting in a pause in its operations. Though a few of these belongings have been recovered, the DEX has but to renew buying and selling.
On a optimistic word, Base opened its doorways to most people on the ninth of August, 2023. The community has since been experiencing regular progress, exceeding 100,000 every day customers solely two days after the mainnet launch.
Crypto Whole Market Cap at $1.125 trillion | Supply: every day TOTAL chart from TradingView
Featured picture from Outlook India, chart from TradingView
