
🚨🚨🚨Security Alert: WUSD.fi / GLOVE Incentive Abuse
On May 25, 2026, WUSD.fi / GLOVE on Ethereum suffered an exploit, resulting in the theft of USDC and USDT from GLO liquidity pools valued at ~$200K so far.
🔍 Root Cause
The incident was caused by sybil abuse in `WUSD._englove`. Each fresh `msg.sender` wrapping at least 100 WUSD while holding fewer than 2 GLOVE could receive up to 2 GLOVE via `Glove.mintCreditless`, with no sybil resistance. The attacker used EIP-7702 helper contracts and a Morpho USDT flash loan to repeat wrap/unwrap cycles, harvest GLOVE, and dump it into Uniswap V3 GLO pools.
🧾 On-chain Details
• Exploiter:
`0x88329A09428778F62BC0C8BAac0997864E5a57f8`
• Victim pool:
Uniswap V3 GLO-USDC `0xB89F65D6c7d33A35Da7C01934e310a6f40E18A1f` (`-11,702 USDC` observed)
• Victim pool:
Uniswap V3 GLO-USDT `0xa2Bd1A142ff49131B8CC70A332bdA0125018c324` (`-8,079 USDT` observed)
• Attack txs:
etherscan.io/tx/0x2051c1f8d…
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