DeFi protocol Blueberry pauses lending following mystery exploit

Decentralized finance protocol Blueberry has managed to pause its protocol after a mad dash to limit potential damage from an “ongoing exploit” on Friday. 

In a Feb. 23 post on X, the Blueberry Protocol Foundation reported that it was suffering an “ongoing exploit,” though it appeared to have already been front-run by the so-called whitehat hacker “c0ffeebabe” according to blockchain security firm PeckShield.

In a separate post, it advised users to withdraw their funds from Blueberry lending markets and was “pausing the protocol as quickly as possible.”

Adding to the chaos, users reported having issues withdrawing with Blueberry noting that the front end was down.

ATTENTION:

Please withdraw from Blueberry lending markets

— Blueberry Protocol Foundation (@blueberryFDN) February 23, 2024

“The front end is also down, so if you are able to interact directly with the contracts to withdraw, please do.”

Around 30 minutes later, Blueberry confirmed it had been able to pause the protocol.

“Funds currently deposited are no longer exploitable and we will update as we have more information.”

UPDATE: The protocol has been paused. Funds currently deposited are no longer exploitable and we will update as we have more information https://t.co/otsa1WZMEj

— Blueberry Protocol Foundation (@blueberryFDN) February 23, 2024

The website and app were offline at the time of writing with the following application error “A client-side exception has occurred.”

Blueberry protocol is a decentralized lending market enabling lending and leveraged borrowing up to 20x of the collateral value.

According to DefiLlama it has a total value locked of $4.5 million and was forked from the Compound DeFi protocol.

This is a developing story, and further information will be added as it becomes available.