Use of Alchemix ‘Reverse Rug’ patches solves a $ 6.5 million shortage

The magic is like Aladdin taking off on a magic carpet: in the first possible case, some users of the decentralized financial protocol are the beneficiaries of mining today, which turns the term “rugpull” to head.

A slang that drains liquidity from a project (usually an unscrupulous founder or developer pulls out on their own), depositors and DeFi users are often the holders of bad debts and / or worthless tokens – in the hope that compensation plans will last months or Can even take years to complete your vest.

However, in mining today, it is the users who must try to change.

This morning Alchemix announced that contracts for one of its synthetic asset, alETH, had “crashed”.

There was a problem with Alchemix alETH contracts. Together with the great team of @iearnfinance, we have identified the error and are doing an autopsy and problem solving.

The funds are safe.

– Alchemix (@AlchemixFi) June 16, 2021

In a bug report released later that day, Alchemix developer “n4n0” stated that “a problem with the alETH vault deployment script accidentally created additional vaults,” several logs used to miscalculate outstanding debt, which in turn means that log monies were used to “repay users”.

As a result, users were able to withdraw their ETH collateral with unpaid alETH loans in a short period of time – a figure that is estimated by the community at 6.5 million dollars.

Alchemix innovates again … this time with an inverted carpet … a “carpet”

Jokes aside, there was a little problem with the new alETH safe where nobody lost money but some users actually made it@ n4n084191635 with a large crash report here https://t.co/Vo3cWRnZPx pic.twitter.com/68G3y1s3x0

– toast.eth (@intocryptoast) June 16, 2021

According to the crash report, the team paused the coinage contract for two and a half hours after mining was discovered. The report finds that no users lost any money from mining and that Yearn.Finance – whose interest vault automatically pays back Alchemix’s aggregated loans – is also unharmed. In addition, a “cautious” initial debt ceiling prevented the log losses from getting worse.

The team, including the author of the n4n0 crash report, appears to have lost their way:

Hell, this incident creates the saddest ngl memes. Credit to @alibyte pic.twitter.com/brk5gUfpST

– n4n0 (@ n4n0841191635) June 16, 2021

A trio of solutions are being rolled out to fill the void, including a temporary increase in protocol fees, an ETH cash injection from Alchemix’s Treasury Department, and the Treasury Department’s sale of DAI for more ETH. The team says they will be implementing a brand new vault to address the shortcomings of the original.

In addition, there may be further changes to the alETH asset. Alchemix currently has an alETH / ETH pool directly on Saddle, a fork supported by Curve Finances VC after Curve reportedly refused to create a synthetic ether pool. However, for the past 48 hours, the Curve social media account has overcome in an attempt to bring back the latest synthetic property to Alchemix.