Massive 4,090 ETH Hack Appears, and Reason Is Surprising
The cryptocurrency protocol "Jimbo's Protocol" has reported a loss of 4,090 ETH, equivalent to approximately $7.5 million at the current Ethereum price. This significant breach was not the result of typical hacking strategies, but a flaw within the protocol itself — specifically, a lack of slippage control in liquidity-shifting operations.
Like I said, NOT surprising.
I've said many times that swap pools with low liquidity are fragile and vulnerable. Better to turn them off and return any outstanding funds. This can be done; was done on Osmosis when LUNA crashed - too late then, but shows that pools can be closed down.
It is also possible to block trades that result in a very large slippage. This means that trader has to use smaller increments. At the moment, most platforms allow the trader to over-ride that safety mechanism.
and they were just about to launch v2.
so how's that going?
Another bit of flawed maths chasing profits while forgetting to protect them.
that's the key - fragile profit-generators.
At some point, some devs will learn ALL the lessons.
a few more details,
https://en.cryptonomist.ch/2023/05/29/7-7-million-crypto-hack-arbitrum/
Exactly! dump uniswap. naive dreadful protocol - it's only merit has been its coding simplicity - being simple is not good enough!