The ETH DeFi space faced three bugs over the weekend but fortunately, it seems that all three will be solved without causing too much trouble so let’s read more in the latest Ethereum news.
The bugs once again show how nascent space is and how important is to manage risks when dealing with these new ETH Defi space protocols. However, we are learning more about them now. The first one was the Saffron Finance bug. Saffron Finance is a complex derivatives product that is launched by anonymous developers and is also unaudited. Despite that, it took the industry by storm when it launched at the start of November. The users deposited millions of dollars worth of DAI while the prominent investors in the space supported it. They made some comments on the fact that the project is unaudited but that didn’t stop the investors from investing. As of yesterday, there was around $60 million worth of value locked in the protocol.
See below 👇
tx with message from 0xMakihttps://t.co/1MdXqw9chq
— JuanSnow (@Juan_Snow1) November 29, 2020
The SFI coin increased to a market capitalization of $10 million but on Sunday, there seemed to be a problem. The protocol works on an epoch-based system where funds are distributed every two weeks. The epoch, however, was supposed to switch hours ago but it didn’t and users were unable to withdraw their funds. The developer “Psykeeper” explained that some deployed a malicious array that disabled the withdrawal function and SFI proceeded to drop by 50 percent.
Around the same time, users reported that they couldn’t withdraw funds from Rari Capital. Rari was launched by a public team and there were a lot of concerns with certain protocol functionality a few weeks ago. The withdrawals didn’t go through this time. A DeFi developer posted that he thinks Rari could have deposited funds into Saffron which is when the withdrawal issues started. The Rari team rebutted the comment but the withdrawal issue was still there.
SushiSwap was also preparing for the release of new DeFi products but some users on Sunday morning noticed bigger transactions taking place in the contracts. One user managed to turn around a $1 into $1000 in just a few transactions. While the cause is not yet known, SushiSwap General Manager 0xMaki, deployed a fix and added that the funds were being drained away as pure profits as opposed to the funds locked up in the protocol. However, all SushiSwap depositors were safe.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]