Minswap, the first multi-pool decentralized exchange on Cardano, suffered a “front-running” attack. Bitcoin and altcoin exchange made a statement on the subject. Here are the details…
Attack on Bitcoin and altcoin exchange
Front-running refers to the practice of obtaining advance knowledge of future operations in various ways. Traders who commit to this can potentially make risk-free profits. DEXs should look for different ways to prevent such attacks. Earlier today, just such an attack took place for Minswap. A Twitter user using CryptoVincenzio’s name noticed that a malicious actor was allegedly placing preorders and pocketing guaranteed profits.
The issue is fixed now, we are monitoring the attacker now creating orders and canceling them because he can't get ahead of the users.
Attacker Address: addr1v8ed5favus306qk82g7kvrqqx34lpayqeu6an3nzynfzwscjx5tsr
We're working on a detailed report and we will publish it ASAP. https://t.co/wTI5hLHEBz
— Minswap Labs (@MinswapDEX) December 8, 2022
In a tweet, Minswap said it’s starting to explore possible lead on the DEX. The project said, “We are working on a fix to prevent it from happening again. We are working hard to finish this as soon as possible.” In a subsequent announcement, Minswap confirmed that the issue has been resolved. Since the attacker could no longer get ahead of the user, he started to cancel the newly created orders. Minswap is currently working on a detailed report on the incident. According to data provided by DefiLlama, Minswap is the leading decentralized finance application on the Cardano Blockchain with a locked total value (TVL) of $28.45 million.
We are aware and investigating possible front running on Minswap DEX and other DEXs. We are working on a fix to prevent it from happening again and we are working hard to finish that as soon as possible. The team will publish more information in the following hours.
— Minswap Labs (@MinswapDEX) December 8, 2022
Cardano (ADA) ecosystem expands
Outside of such attacks, the Cardano (ADA) ecosystem is experiencing expansion. A report by leading crypto asset data provider CryptoCompare revealed that smart contract platform Cardano (ADA) increased its daily active users by 15.6 percent in November after the collapse of popular cryptocurrency exchange FTX.
In its latest Asset Report, CryptoCompare revealed that after the collapse of FTX, there is a growing trend for users to move their assets away from centralized cryptocurrency platforms to decentralized solutions and self-surveillance. This move led to a spike in the average daily active users of the smart contract platform, CryptoCompare wrote. In total, Cardano’s daily active users increased by 15.6% to 75,800 last month, the highest number recorded since May.
Similarly, monthly transactions on the Cardano network rose 5.34% to 2.32 million last month. It was the highest trading volume since April. Data from the cryptocurrency’s network shows that the number of wallets on it has increased by over 100,000 in the past month. After the collapse of FTX, the liquidity crisis and the “bank run”, Cardano’s on-chain metrics accelerated the growth. Bank rush saw FTX stop withdrawals. He later filed for Chapter 11 bankruptcy protection.
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