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Wise Lending Suffers $464K Flash Loan Attack

Plus Goldman Sachs' Risky but Rewarding Bet on Wealthy Clients

Wise Lending, a Web3 lending application and yield aggregator, fell victim to a flash loan attack. This is the first significant exploit in the DeFi space this year.

The attack resulted in a loss of 177 ETH, valued at approximately $464,000. Blockchain security firm PeckShield identified a flaw in Wise Lending's share accounting logic.

The attacker exploited the flaw to drain the market funds. The exploiter inflated the share price in a nearly empty market and then borrowed most of the funds from the lending markets.

The Wise Lending flash loan attack highlights a critical risk area for alternative business funders in the DeFi sector.

This incident emphasizes the need for enhanced vigilance and sophisticated risk management strategies, especially in areas like smart contract auditing and understanding the intricacies of DeFi protocols.

Our Opinion:

For funders, it's vital to not only rely on surface-level security assurances but to delve deeper into the technical robustness of the platforms they invest in or collaborate with. Staying ahead in understanding and mitigating such risks is key to safeguarding investments in the dynamic world of decentralized finance.

Goldman Sachs' Risky but Rewarding Bet on Wealthy Clients

Goldman Sachs is intensifying its efforts to attract ultra-wealthy clients, focusing more on lending to private wealth customers who have an average of $60 million deposited.

This strategy shift includes an increase in loans to clients like hedge funds, contributing to a significant revenue boost in their trading sectors.

The bank's overall loans and lending commitments, excluding consumer lending, reached $327.5 billion at the end of the third quarter, marking a substantial increase from 2020.

This move is part of Goldman's broader strategy to diversify its revenue streams and reduce focus on its consumer lending business, following the sale of its partnerships with Apple and General Motors and the GreenSky consumer finance platform​

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