🚨 $KAVA exploit explained: a dead BUSD market, 243,000x collateral and a hole nobody has filled
The details of the Kava Lend drain are now out. An attacker spent days testing a nearly idle BUSD market inside the lending protocol, then manipulated it to inflate their collateral value by roughly 243,000 times in about three minutes. They used it to borrow 55.2 million KAVA across 127 transactions, bridged about 49 million to BNB Chain and sold it for around $2 million. Kava says it was not an infinite mint and that the damage is isolated to Kava Lend. It paused the Axelar bridge, and Upbit, Bithumb and Coinone froze transfers. The problem now is the hole: 55 million KAVA is owed to lenders from a pool that is effectively empty, and the full incident report is still pending. Today's bounce is a relief pop inside a confidence crisis. Sell strength until the report lands and the exchanges reopen.$EVAA $AGT
SHORT
Entry: 0.0380
SL: 0.0440
TP1: 0.0290
TP2: 0.0250
TP3: 0.0200
The details of the Kava Lend drain are now out. An attacker spent days testing a nearly idle BUSD market inside the lending protocol, then manipulated it to inflate their collateral value by roughly 243,000 times in about three minutes. They used it to borrow 55.2 million KAVA across 127 transactions, bridged about 49 million to BNB Chain and sold it for around $2 million. Kava says it was not an infinite mint and that the damage is isolated to Kava Lend. It paused the Axelar bridge, and Upbit, Bithumb and Coinone froze transfers. The problem now is the hole: 55 million KAVA is owed to lenders from a pool that is effectively empty, and the full incident report is still pending. Today's bounce is a relief pop inside a confidence crisis. Sell strength until the report lands and the exchanges reopen.$EVAA $AGT
SHORT
Entry: 0.0380
SL: 0.0440
TP1: 0.0290
TP2: 0.0250
TP3: 0.0200
