Pendle is suspected of being attacked by a token minting dumping, the official: the protocol is safe and not hacked.

The decentralized yield tokenization protocol Pendle has reported that an on-chain wallet was emptied, with some suspected of minting and dumping PT/YT tokens in large quantities, causing a big dump in the price of PENDLE coins. However, the officials emphasized that the protocol itself was not hacked and the funds remain safe.

Suspected vulnerability behavior exposed: Attackers are minting and dumping coins en masse.

Pendle announced through X on September 30 (Monday) that an on-chain wallet had been emptied, and the attacker is suspected of continuously minting Principal Tokens (PT) and Yield Tokens (YT) in the Pendle protocol, quickly selling these tokens for profit.

This behavior has raised market alerts, with users questioning whether there is a minting vulnerability in the protocol or if it has been subject to some internal operation.

Official clarification: The protocol has not been hacked, and the funds are safe.

In response to community panic, the Pendle team quickly issued a statement clarifying that "the protocol itself has not been hacked, and all funds are still safe." However, as of now, it has not been clarified how the attackers were able to "mint" PT and YT tokens for free.

Market reaction: PENDLE price briefly fell.

According to data from the blockchain security firm CertiK, the price of PENDLE dropped to $4.137 after the news broke, and then rebounded to $4.41 following the official statement, with a daily decline of about 5.4%.

Pendle is about to launch Plasma: time-sensitive

The timing of this event is quite sensitive, as Pendle is about to launch its native stablecoin and the integration feature with the Plasma chain. This upgrade is expected to bring higher total locked value (TVL) and is likely to inject more liquidity and user confidence into the protocol.

What is Pendle?

Pendle was launched on the Ethereum mainnet in June 2021, and it is a DeFi protocol that allows users to tokenize, trade, and manage future yields. Users can split future yields from assets such as staked coins or lending positions into "Principal Tokens (PT)" and "Yield Tokens (YT)" for free trading. According to DeFi Llama data, Pendle currently has a Total Value Locked (TVL) of approximately $6.5 billion, holding an important position in the DeFi ecosystem.

This article discusses how Pendle was allegedly attacked by an attacker who was minting tokens for dumping. The official statement: the protocol is safe and has not been hacked. It first appeared on on-chain news ABMedia.