Kava Lend Attacker Borrows 55.2M KAVA via Inflated BUSD Market, Sells $2.09M

TREE NEWS reports: An attacker borrowed about 55.2 million KAVA, worth roughly $3.76 million at pre-attack prices, from Kava chain’s native lending protocol Kava Lend on Friday night by first crushing the net supply of a nearly idle BUSD market to a tiny value, inflating deposit value about 243,000 times within three minutes, then borrowing in 127 tranches against the inflated collateral and using a second account to liquidate each loan and bypass borrow limits. About 49.2 million KAVA was bridged via LayerZero to BNB Chain and mostly sold for about $2.09 million in BNB and USDT. On-chain data shows the attacker had been testing the market since Nov. 8; Kava said the incident was not infinite minting and was confined to Kava Lend.