As of yesterday, users on Twitter say there may be a multi-million dollar discrepancy in EVODeFi’s protocol. On the other hand, some issues arose for the Optimism team and the market maker. There is a million-dollar fund deficit and token loss in altcoin projects.
Million dollars short of funds in Oasis, altcoin on the brink of bankruptcy
Rumors of bankruptcy are circulating around EVODeFi, a bridge to the Oasis Protocol ecosystem that could be a $66M funding shortfall. On June 7, various users on Twitter suggested that there may be a multi-million dollar inconsistency in EVODeFi’s protocol. Reports indicate that the project has 18 million USDT, but owes 96.8 million USDT.
Had to freeze EvoDeFi services
EVODeFi halted the bridge on June 7, claiming “too much speculation” and user funds at stake. It started operating again on 8 June. Rumors of Tether shortages have caused USDT to lose its $1 peg on certain Oasis-based exchanges. USDT dropped to $0.16 on June 6. It rose to about $0.63 on June 7. It is currently trading at $0.14 on Oasis’ largest DEX platforms ValleySwap and YuzuSwap.
The Oasis Foundation has issued a statement tying these losses to FUD rather than protocol failures. He claims that stablecoins do not lose their stable. Instead, the team says:
EvoDeFi bridged assets are trading below their expected value on ValleySwap due to fears of not being fully supported.
Another scandalously successful scaling solution was Optimism. Millions of tokens are currently missing.
Optimism lost 20 million tokens, hidden from the community
As quoted by Kriptokoin.com, Optimism’s airdrop took place less than two weeks ago. However, some problems arose for the project team and the market maker. Optimism’s celebrations were cut short by the hack that resulted in 20 million OP tokens. The hack took place on May 26. But the team is just explaining.
One million tokens worth approximately $1.3 million were sold on Sunday. The team sent an additional 1 million tokens worth approximately $730,000 to Vitalik Buterin’s Ethereum address on Optimism earlier today. The remaining tokens are idle for now. However, there is a possibility that the hacker can sell at any time. It can also be used to change management decisions.
A summary of Thursday’s events from the Optimism team, 20 million OP tokens Wintermute detailed how it is intended to be used by the crypto market creation firm. The Optimism team sent all of the tokens after sending two test transactions.
Wintermute investigates the altcoin hack
However, Wintermute discovered that he cannot access the tokens as the smart contract he used to accept the tokens is still in L1 and has not been updated for distribution to Optimism. This technical oversight opened the contract to an attack where a bad player took control of the contract in L2. As soon as Wintermute became aware of the problem, he made the following statements:
launched a rescue operation to distribute the L1 multisig contract to the same address in L2, but the attempt to rectify the situation was too late. An attacker was able to deploy multisig to L2 with different initialization parameters before the recovery was complete and they took control of 20 million OP tokens. A multi-signature agreement requires the consent of multiple key holders to perform a transaction.
Wintermute also agreed to return 19 million tokens within a week If he did, he offered to consider it a white hat hack. The team made this offer before the hacker transferred another 1 million tokens. The OP price dropped 30% to $0.76, accompanied by the hack news. It is currently trading at $0.8476, recovering slightly.
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