A user lost almost $50 million in a decentralized finance protocol

[Oshosondy]

This happened on a decentralized finance protocol, although the trader saw the value of what would be gotten, but should the trade be executed at all when it is just a means to make people lose money.

After compensation will be made, the person still lost over $49 million. All these kind of decentralized money loss vulnerability should not exist.

https://x.com/StaniKulechov/status/2032193345414664659?s=20

[TastyChillySauce00]

His mistake was setting the slippage to enormously huge number, people thought setting slippage higher will only make their transaction smoother by sacrificing a little cost for the slippage, that couldn't be more wrong.
Low liquidity pool is a real thing and MEV bot exist. These bot are ready to borrow tens of millions from flash loan pool, pay the block builder fee to reorder transaction to frontrun you, disrupt the liquidity in the pool and sell you the coin at significantly higher rate.

For anyone out there who uses DEX and want to be safe, keep the slippage number at minimum always.

[l8orre]

just shows how parasitic and terminally corrupt the whole ETHSOLTRONPOLYGONADASHITSHOWAAVE with its flawed architectures and smart contracts are ..

spoiler: it's not a bug, it's a feature  

MEV maximum extractable value and sandwich orders etcetc are inherent features of this garbage  

seems sheeple always think that it is not going to be themselves that will be fleeced, always the others in the herd, until ...

errrm.. how many ETH did Vitalik just dump? 17,000 thereabouts?


https://x.com/StaniKulechov/status/2032193345414664659

Earlier today, a user attempted to buy AAVE using $50M USDT through the Aave interface.

Given the unusually large size of the single order, the Aave interface, like most trading interfaces, warned the user about extraordinary slippage and required confirmation via a checkbox. The user confirmed the warning on their mobile device and proceeded with the swap, accepting the high slippage, which ultimately resulted in receiving only 324 AAVE in return.

right. casually trading $50M on a ... cellphone, swiping right past those annoying prompts...

The CoW Swap routers functioned as intended, and the integration followed standard industry practices.

it sure did, which is to fleece each and every user, usually only so it is not quite that noticeable, while this guy was so stupid that it made a notable dent, which brings unwanted attention to the systemic bloodsucking  ...

[el kaka22]

Honestly, there is a good chance that these people are just simply careless and there isn't a way to stop these people because it is not inherit to anything related to decentralized. I mean we have seen it in the centralized ones and this is why I think it is clear that we are going to see most of these keep going.

We have seen for example people pay gas fee mistakenly by a huge number and that is why it wasn't something related to crypto. Which is going to be something that will be similar here, it's enduser's mistake and that is why it is not going to be the same and it will happen.

[nelson4lov]

A lot of people think this is a money laundering attempt. Well, I don't know but I think the concept of MEV is stupid and shouldn't exist. I don't see why we say that blockchain is a transparent technology but there are people that can sandwich transactions and maximally extract value from a position of little to no value. If I ever get this size of liquidity, I might not use it in crypto because of this.

Losing $49m+ from simply making a crypto transaction is insane no matter how they try to justify it. $50m is a lot of money that more than 95% of the world population will never touch in their lifetime.

[Josefjix]

Isn't there a percentage slippage shown before executing a trade, why is this user seem to be different, is it because the system has programmed to behave abnormally when bigger amount of money is bee sensed.

From the article, the team promised to return $600k to the victim, what for?
What happened to the whole $49m, where has it gone to that it can't be returned back.

Why the set percentage slippage does not correlate with the amount, but misbehave when such amount wanted to stake. All these DeFi platforms are liars and looters.

[TastyChillySauce00]

Isn't there a percentage slippage shown before executing a trade, why is this user seem to be different, is it because the system has programmed to behave abnormally when bigger amount of money is bee sensed.

From the article, the team promised to return $600k to the victim, what for?
What happened to the whole $49m, where has it gone to that it can't be returned back.

Why the set percentage slippage does not correlate with the amount, but misbehave when such amount wanted to stake. All these DeFi platforms are liars and looters.

Some of the money went to MEV and some other went to the block builder. It's basically like a free lunch for MEV when you don't set slippage correctly.
Everyone of them will try to front run you and as a result you got nothing left. Titan Builder got $34m and AAVE reimbursement is out of good will and they only got that 600k which they refunded.

[o48o]

A lot of people think this is a money laundering attempt. Well, I don't know but I think the concept of MEV is stupid and shouldn't exist. I don't see why we say that blockchain is a transparent technology but there are people that can sandwich transactions and maximally extract value from a position of little to no value. If I ever get this size of liquidity, I might not use it in crypto because of this.

Losing $49m+ from simply making a crypto transaction is insane no matter how they try to justify it. $50m is a lot of money that more than 95% of the world population will never touch in their lifetime.

That theory crossed my mind as well, as it's way more likely scenario then someone being clumsy AF, even though it's possible an you couldn't really prove otherwise, unless you connect that money again to person who was clumsy. I find that low effort money laundering was more hilarious, like selling millions of dollars worth of garbage NFTs that are pictures of low quality rocks.

I wonder if trump exchange is going to do something similar, as it's believable that they would "lose" money because of incompetence.

I miss the times of "I lost all my Monero in a boating accident".

[nelson4lov]

Some of the money went to MEV and some other went to the block builder. It's basically like a free lunch for MEV when you don't set slippage correctly.
Everyone of them will try to front run you and as a result you got nothing left. Titan Builder got $34m and AAVE reimbursement is out of good will and they only got that 600k which they refunded.

None of these things used to matter in the past. You just needed to put around 150k to 200k gas limit on MEW wallet then and that would be the only thing you have to check for before broadcasting your transaction. These days, if you're not careful enough you'll lose much more from a simple transaction that gets executed on the blockchain. If it was not really money laundering, such loss will leave a bad taste in the month of the user and other big guys that wanted to come to crypto to play won't do so anymore.

[passwordnow]

For anyone out there who uses DEX and want to be safe, keep the slippage number at minimum always.

To be honest, I think that many users of these defis don't even understand what a slippage is. So, they think that pulling the trigger to higher number makes them think that the trade will be even easier at no cost.

Losing $49m+ from simply making a crypto transaction is insane no matter how they try to justify it. $50m is a lot of money that more than 95% of the world population will never touch in their lifetime.

It is truly insane, I mostly thought of these incidents as money laundering. But if dived down to what actually happened, it lies down to their negligence.

[TastyChillySauce00]

To be honest, I think that many users of these defis don't even understand what a slippage is. So, they think that pulling the trigger to higher number makes them think that the trade will be even easier at no cost.

One hundred percent spot on and yep, some people thought slippage as just some random number while in fact its the only thing that prevent us from losing our money when swapping.
The problem is the DEX never bothered to explain the slippage and only gives some small warning toast notification and thats it.

Back then using pretty high slippage was not a problem at all, we're still getting the amount we expected but right now there are tons of extractors lurking on the shadow to rob us off our money through sophisticated method.
Even going as far as paying tons of money to block builder for reordering.

[passwordnow]

To be honest, I think that many users of these defis don't even understand what a slippage is. So, they think that pulling the trigger to higher number makes them think that the trade will be even easier at no cost.

One hundred percent spot on and yep, some people thought slippage as just some random number while in fact its the only thing that prevent us from losing our money when swapping.
The problem is the DEX never bothered to explain the slippage and only gives some small warning toast notification and thats it.

Back then using pretty high slippage was not a problem at all, we're still getting the amount we expected but right now there are tons of extractors lurking on the shadow to rob us off our money through sophisticated method.
Even going as far as paying tons of money to block builder for reordering.

As I've used it before, there's a little (!) of explanation of what it is but it is not concise and whoever reads it won't mind adjusting it to the highest. So, there's also a likelihood that they're doing it with intention of chances of new users to just increase it as much as they can. It was a long time since I've used one defi and learning that these happens is because there's really a loophole on what they provide to their users.