QuickSwap market Taken For $188,000
In today's edition of YIYL (You Invest, You Lose) we head back to the so called DEFI market, where everyday someone is taken to the cleaners and I just think thank goodness that wasn't me.
I feel like everyone in DEFI and shitcoins looks at these issues and overlooks them because hey it wasn't me. I am too smart to get caught up in a hack, scam or rug pull, I only invest in things I've researched, as if research counts for dick squat.
All you did was read the projects marketing material and some tweets by paid shills and suddenly you're an expert investor, oh get fucked and you will, it's only a matter of time.
Quickswap to quick for its own good
Quickswap is one of these so called DEX or DEX aggirgator tools that allow you the privlee of putting your money at risk and then paying you in their make believe token so if you're on PolyGon, you can fuck around and try to capture some of the capital flow and try to exit early.
QuickSwap is a fork of the Uniswap DEX but runs on Polygon, and that's the extent of their product a copycat of ETH on a copycat of ETH chain lol
While the swapping service promises infinite amount of people will be routing through their liquidity pools and you'll get a piece of the pie when trading on these shitcoin routes are like down over 50% lol.
When you manage different assets on-chain you need oracle feeds to maintain pricing with the different markets around you with 100x your liquidity, so Binance and the like, if you're not in consensus with them arb traders will butt fuck your treasurey in 2 mins or less.
So add more assets, add more exposure to your asshole.
Oracles go blind
A prime example of assholes being opened up, is the recent oracle manipulation attacks on the miMATIC ($MAI) market a stablecoin on the QuickSwap decentralized exchange.
A user was able to manipulate the spot price of assets to borrow funds, ultimately making off with 138 ETH ($188,000) that they quickly tumbled through Tornado Cash for a sweet little profit.
https://twitter.com/QuickswapDEX/status/1584524584984145922
The vulnerability was due to the use of a Curve LP oracle, which contains a vulnerability that was disclosed by a security firm earlier that month, but when it's on chain and that smart contract is active and talking to someone you follow the breadcrumbs to your pot of gold.
PeckShield prognosis
Security firm PeckShield initially suggested the issue might have been with QiDAO, which creates the $MAI stablecoin, but eventually found it was a price feed problem. The vulnerability is not with their project, although it's possible that the theft will impact the collateralization of their stablecoin.
https://twitter.com/peckshield/status/1584336827514638336
Who cares what happened, talk about the price
As the news broke, traders obviously are going to dump their bags and we saw the stablecoin de-peg slightly but nothing more than 2% which isn't out of a range for their treasury to make up the difference and throw LP money at the problem.
As is the case in shitcoins, you constantly have to throw good money after the bad.
After the news broke of the hack, QuickSwap's native token took a little bit of a dive at 3% but I mean if you're in it for the sick gainz bro, you shouldn't care about a 3% drop + 8% inflation on the fiat you're measuring it in lol.
With modern entertainment being so shit these days and no good things to watch or even read, I find loss porn in shitcoins to be a great replacement for now, sure I'll probably get bored of it eventually but let's see how long I can ride it out.
To me it's just a daily reminder of why the trade-offs bitcoin makes for security continue to grow in value everyday, a fact I hope I never forget.
Sources:
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YIYL! This is becoming one of my favorite news columns
Why thank you for the kind words, I appreciate it, glad someones enjoying it along with me
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