KyberSwap User Swaps 2 Million USD But Only Received 0.05 USD In Return

Key Points:

• A KyberSwap user exchanged 2 million USD tokens for only 0.05 USDT.
• The issue with transactions stems from both sides: customers who choose a novel method of converting assets without setting up slippage measures, and KyberSwap when traversing transactions to a “pool” die “.

Kyber Network’s DeFi initiative, KyberSwap, admits that consumers had issues during transactions, resulting in significant losses.

On March 11, Kyber Network got notification that a KyberSwap user swapped 2 million USD tokens but only received 0.05 USDT, generating consternation in the DeFi community. A DeFi user attempted to exchange the 3CRV token – the token that provides liquidity to Curve’s 3pool – for the stablecoin USDT. Nevertheless, most individuals will just change 3CRV back to stablecoin on Curve, rather than trading it on the DEX.

As a result, KyberSwap had difficulties in locating the swap site requested by the user, providing the result of a 3CRV/USDC pool on Uniswap v2 with extremely weak liquidity due to just 2 USDC being accessible and having been inactive for 251 days, then continuing to swap USDC to USDT. This individual traded 2 million USD of 3CRV tokens for 0.054 USDC. KyberSwap will continue to swap 0.054 USDC for 0.051 USDT and return it to the user’s wallet.

Following the transaction, a MEV bot discovered that the aforementioned pool was imbalanced and placed 1.41 USDC into the pool while withdrawing 2 million USD of 3CRV tokens. MEV adds a USDC deposit to the pool with a cost of up to 23.7 ETH (about $39,000) to ensure the quickest transaction possible. The issue with transactions stems from both sides: customers who choose a novel method of converting assets without setting up slippage measures, and KyberSwap when traversing transactions to a “pool” die “.

On the afternoon of March 11, KyberSwap verified the event. The project claims to have provided the consumer a switch option at a reasonable price, which the user accepted. When given with fresh information, users continue to pick swap despite the large exchange rate difference, resulting in a paltry quantity of USDT in return. KyberSwap attempted to reproduce the conditions that led to the above exchange, with almost identical outcomes.

Kyber agrees that their swap interface might be improved to display swap estimations more prominently. Meanwhile, the project is considering adding a mechanism that compels users to create a new transaction if the revised swap price is lower than the information displayed earlier. The project instantly presented a warning about exchange rate changes and prompted users to approve them before exchanging.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Chubbi

Coincu News