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DeFi

SushiSwap Asks Lido Community For Help To Recover Lost ETH

April 14, 2023 - Around 2 mins mins to read

Key Points:

  • SushiSwap launched a solicitation in the Lido community, which mentioned that due to the RouteProcessor2 contract problem.
  • A part of ETH was transferred to the block builder as MEV rewards and then directed to Lido Execution Rewards Vault.
  • The project said that it had contacted several Lido contributors over the weekend to discuss the option of recovering these funds.
After the RouteProcessor2 bug, SushiSwap sought out the Lido community for assistance in reclaiming the misused monies and sent them to validator stakers.
SushiSwap Asks Lido Community For Help To Recover Lost ETH
SushiSwap Asks Lido Community For Help To Recover Lost ETH 2

SushiSwap said on April 14 that it had initiated a solicitation in the Lido community, stating that owing to the RouteProcessor2 contract fault, a portion of ETH was transmitted to the block builder as MEV incentives and subsequently routed to the Lido Execution Rewards Vault (or about 795.9761955 ETH).

SushiSwap updated its protocol to V3 over the weekend, which featured a new router to allow swaps and future aggregation plans.

The RouteProcessor2 contract, on the other hand, included a critical risk level approval flaw, and users who accepted the contract during the first 12 hours it was online were in danger of being abused by the contract.

As a consequence, numerous additional individuals were able to repeat the transaction, draining about 1800 WETH from a single wallet. Several of these transactions were created by separate block builders, and in one example, a significant sum of ETH was transmitted as an MEV reward to the block builder, who subsequently diverted it to the Lido Execution Rewards Vault.

Jared Gray, SushiSwap’s “chief chef,” verified the issue and vulnerability and reiterated Peckshield’s advice that individuals who have dealt with the SushiSwap blockchain withdraw all rights provided to its contracts. Grey first reported on SEC subpoena two weeks ago.

SushiSwap said that it had contacted many Lido donors over the weekend to investigate the possibility of retrieving this fund and was advised to hold a community discussion. Currently, around 78 ETHs have been paid to Lido Treasury, and the remaining monies have been or will be re-mortgaged. SushiSwap expressed optimism for a stop-loss solution after asking for feedback.

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

Harold

Coincu News

Dex

Lido

Lido Execution Rewards Vault

RouteProcessor2

sushiswap

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
DeFi

SushiSwap Asks Lido Community For Help To Recover Lost ETH

Key Points:

  • SushiSwap launched a solicitation in the Lido community, which mentioned that due to the RouteProcessor2 contract problem.
  • A part of ETH was transferred to the block builder as MEV rewards and then directed to Lido Execution Rewards Vault.
  • The project said that it had contacted several Lido contributors over the weekend to discuss the option of recovering these funds.
After the RouteProcessor2 bug, SushiSwap sought out the Lido community for assistance in reclaiming the misused monies and sent them to validator stakers.
SushiSwap Asks Lido Community For Help To Recover Lost ETH
SushiSwap Asks Lido Community For Help To Recover Lost ETH 4

SushiSwap said on April 14 that it had initiated a solicitation in the Lido community, stating that owing to the RouteProcessor2 contract fault, a portion of ETH was transmitted to the block builder as MEV incentives and subsequently routed to the Lido Execution Rewards Vault (or about 795.9761955 ETH).

SushiSwap updated its protocol to V3 over the weekend, which featured a new router to allow swaps and future aggregation plans.

The RouteProcessor2 contract, on the other hand, included a critical risk level approval flaw, and users who accepted the contract during the first 12 hours it was online were in danger of being abused by the contract.

As a consequence, numerous additional individuals were able to repeat the transaction, draining about 1800 WETH from a single wallet. Several of these transactions were created by separate block builders, and in one example, a significant sum of ETH was transmitted as an MEV reward to the block builder, who subsequently diverted it to the Lido Execution Rewards Vault.

Jared Gray, SushiSwap’s “chief chef,” verified the issue and vulnerability and reiterated Peckshield’s advice that individuals who have dealt with the SushiSwap blockchain withdraw all rights provided to its contracts. Grey first reported on SEC subpoena two weeks ago.

SushiSwap said that it had contacted many Lido donors over the weekend to investigate the possibility of retrieving this fund and was advised to hold a community discussion. Currently, around 78 ETHs have been paid to Lido Treasury, and the remaining monies have been or will be re-mortgaged. SushiSwap expressed optimism for a stop-loss solution after asking for feedback.

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

Harold

Coincu News