Base, a new blockchain network that promises fast and cheap transactions, has been hit by two major incidents involving SwirlLend and RocketSwap, two projects built on its platform. SwirlLend, a lending protocol, suffered a rug pull that drained its assets, while RocketSwap, a decentralized exchange, was hacked by an attacker who exploited a bridge to Ethereum.
SwirlLend, a lending protocol that claimed to offer high-interest rates and low collateral requirements, has been rugged on Base, as security firm PeckShield reported.
The project suffered a rug pull today that led to the total volume of its assets falling from $784,300 to $49,200.
The protocol’s official Twitter, Telegram, GitHub, and Discord channel accounts deleted themselves shortly after the rug pull.
The deployment also bridged $289,500 in ether and USDC tokens to the Ethereum blockchain from Coinbase‘s Base.
The deployer also removed 32,600 USDC and 140.68 ETH, while 92 ether is still held on the platform.
In an update, PeckShield said that SwirlLend got rugged on Base and Linear, another blockchain network that supports cross-chain transactions.
The deployer reportedly bridged 94 ETH from Linear to Ethereum through the Orbiter Finance bridge.
The remaining balance amounts to 165.6 ETH and 32,641 USDC.
RocketSwap Loses $865,000 in Hack
Meanwhile, RocketSwap Labs, a project that aims to create a decentralized exchange and yield farming platform on Base, fell victim to a hacking incident resulting in the loss of $865,000 or 471 Ether.
The attacker exploited a bridge from the network to Ethereum. Following the breach, the attacker generated massive “LoveRCKT” tokens, totaling 90 trillion in supply. These tokens were then transferred to Uniswap, along with 400 ETH.
In response to the breach, the RocketSwap Labs team outlined their plan of action to redeploy a new farm contract, make it open-source on the blockchain, and relinquish the minting rights, presumably related to the RCKT token.
Furthermore, the team indicated that they would call upon the hackers to return the assets taken.
Base Under Scrutiny
Base has generated attention due to its mainnet launch and subsequent implementation.
The network claims to offer fast and cheap transactions for various use cases such as decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and social media.
However, the recent SwirlLend incident mirrors a similar situation involving the BALD meme coin, once valued at $85 million.
The value of BALD collapsed almost entirely after an unidentified developer withdrew liquidity from the primary pool, even before the mainnet launch.
More recently, someone accused AzFlin, a developer associated with Uniswap and FrensTech deployment, of rug-pulling 14 ETH, equivalent to $26,000, from the FrensTech project on the Base network.
These actions allegedly occurred just four hours after the project’s launch. AzFlin countered these allegations, claiming that he had only withdrawn 1 ETH worth of liquidity that he had initially contributed to the project.
Despite his explanation, AzFlin was subsequently removed from his role at Uniswap.
These incidents have raised questions about the security and reliability of Base and its projects.
Some users have expressed frustration and disappointment with the network and its developers on social media platforms like Reddit and Twitter.
Others have warned potential investors to be cautious and vigilant when dealing with new and untested projects on Base.
