🔍 Deconstructing the $1.3M $PENDLE Whale Incident

The crypto community witnessed a sophisticated, yet preventable, exploit. Here’s the breakdown from SlowMist and the official PENDLE team.

The Bottom Line:

This wasNOT a protocol hack. PENDLE and AAVE systems remained secure. The vulnerability was a self-inflicted error in a custom contract.

What Actually Happened?

1. The Flawed Setup: A PENDLE whale created a custom contract for a Morpho flash loan.

2. The Critical Error: This contract's onMorphoFlashLoan function was mistakenly left publicly callable by anyone.

3. The Domino Effect: The whale then entrusted their entire position to this vulnerable contract.

4. The Exploit: A hacker simply called this public function, initiating a sequence that allowed them to drain the whale's collateralized AAVE and PENDLE holdings.

Key Takeaway for Every Trader:

Smart contracts are powerful,but their configuration is paramount. A single permission error can lead to a total loss.

Always remember:

✅Audit your contracts.

✅Limit permissions strictly.

✅Understand the code you deploy.

The chain doesn't lie, and it shows no mercy to configuration oversights.

DYOR No Financial advice!

 #Crypto #DeFi #Securityalert #PENDLE #AAVE

$PENDLE

$AAVE