Topic: Jackpot! User turns $200 into $250K thanks to a buggy DeFi protocol - page 2. (Read 204 times)
September 10, 2020, 08:50:07 AM
I have heard about this story, and unexpectedly, in the past 1 month, there have been 2 cryptocurrencies with faulty token rebase, YAM and SYFI. The guy who turned 0.5 ETH into 740 ETH is very lucky, if it was me I would also DUMP.
September 10, 2020, 07:28:13 AM
An anonymous user managed to net a profit of $250k from a $200 outlay due to a flaw in a DeFi protocol clone’s rebase code.
https://cointelegraph.com/news/jackpot-user-turns-200-into-250k-thanks-to-a-buggy-defi-protocol
Lucky guy indeed, but I was just thinking, if you're the guy in this situation? Are you going to take advantage of the exploit or will simply inform the devs about it? It's a question of ethics and morals and values here.
Quote
The token SYFI was launched as a soft-pegged adaptive cryptocurrency that expands or contracts its supply automatically. The concept was popularized by Ampleforth which uses a rebasing mechanism to adjust the supply to reflect changes in demand.
However, the Uniswap price of the cloned token was not adjusted to account for the rebase and the trader managed to sell the tokens at the previous price, wiping out virtually all of the liquidity in the pool. A flaw in the SYFI-rebasing mechanism allowed the anonymous user to obtain a large amount of tokens during its first rebase on September 3.
A DeFi trader using the Twitter handle Amplify has admitted that he was the one who netted 740 ETH from an initial investment of just 0.5 ETH. This works out at roughly a $250,000 return for a $200 layout.
However, the Uniswap price of the cloned token was not adjusted to account for the rebase and the trader managed to sell the tokens at the previous price, wiping out virtually all of the liquidity in the pool. A flaw in the SYFI-rebasing mechanism allowed the anonymous user to obtain a large amount of tokens during its first rebase on September 3.
A DeFi trader using the Twitter handle Amplify has admitted that he was the one who netted 740 ETH from an initial investment of just 0.5 ETH. This works out at roughly a $250,000 return for a $200 layout.
https://cointelegraph.com/news/jackpot-user-turns-200-into-250k-thanks-to-a-buggy-defi-protocol
Lucky guy indeed, but I was just thinking, if you're the guy in this situation? Are you going to take advantage of the exploit or will simply inform the devs about it? It's a question of ethics and morals and values here.
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