An attack on the Kava Lend lending protocol drained roughly 55 million KAVA tokens, valued at about $3.76 million before the incident. On-chain analysis indicates that the attacker pushed the effective net supply of the nearly inactive BUSD market close to zero, causing the protocol to overstate deposit collateral by approximately 243,000 times. The attacker carried out 127 borrowing transactions and then bridged around 49.2 million KAVA to BNB Chain through LayerZero, realizing about $2.09 million in BNB and USDT after selling the tokens. Kava said the incident was contained within Kava Lend and was not an unlimited token-minting problem, but a complete official post-mortem and recovery plan had not yet been published. The case highlights how neglected secondary markets can disrupt DeFi collateral mechanisms and expose lenders across the protocol.
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