The lending protocol Kava Lend was attacked, approximately 55.2 million KAVA were borrowed

According to The Block, on-chain data shows that the attacker borrowed approximately 55.2 million KAVA from the lending protocol Kava Lend on the Kava chain, valued at about 3.76 million dollars based on the price before the attack. The attacker exploited the mechanism of the idle BUSD market, amplifying the deposit value by approximately 243,000 times, and borrowed KAVA multiple times using inflated collateral.

Approximately 49.2 million KAVA was subsequently transferred to the BNB Chain via LayerZero, most of which was sold for about 2.09 million dollars in BNB and USDT. Kava previously stated that the incident did not involve unlimited issuance, 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.