Kava Lend Lending Protocol Exploited, Approximately 55.2 Million KAVA Borrowed

On November 15, according to The Block, on-chain data shows that an attacker borrowed approximately 55.2 million KAVA from Kava Lend, a lending protocol on the Kava chain, valued at about $3.76 million based on pre-attack prices. The report noted that the attacker exploited the idle BUSD market mechanism, inflating deposit value by approximately 243,000 times and repeatedly borrowing KAVA with inflated collateral.

Approximately 49.2 million KAVA was subsequently bridged to BNB Chain via LayerZero, with most sold for about $2.09 million in BNB and USDT. Kava previously stated that the incident was not an infinite mint, and the impact was limited to Kava Lend; partner exchanges have suspended KAVA deposits and withdrawals, and the team has also paused the Axelar cross-chain bridge.

[TechFlow]