DeFi: a $400,000 mistake
DeFi: a $400,000 mistake
Defi

DeFi: a $400,000 mistake

By Alfredo de Candia - 31 Aug 2020

Chevron down

As reported by the head chef of SushiSwap, a protocol similar to Uniswap but with its own token economy, yesterday $400,000 were sent to the SushiSwap contract, but these funds have now been lost.

As can be seen, 2 transactions were made from the Gate.io exchange, but unfortunately due to an error, they were sent to the wrong address and, by sending them directly to the smart contract without going through the relevant procedure, this resulted in the loss of these funds. 

What is SushiSwap?

For those who were wondering what SushiSwap is, it is a liquidity provider very similar to Uniswap and therefore it is useful for obtaining and exchanging different tokens.

The main difference in using this protocol compared to Uniswap is that it allows you to retrieve proprietary tokens called SUSHI.

It’s interesting to note that in this protocol the so-called LP tokens are entered, i.e. all those tokens from the various protocols and pools that provide really incredible APYs.

These rewards currently range from a minimum of 902% for USDC-ETH UNI-V2 LPad, to a maximum of 3079% by depositing UMA-ETH UNI-V2 LPs.

Considering these values, it is normal that everyone has embarked on a gold rush to use this protocol and retrieve these tokens which are currently worth just over $3.

DeFi records

Now it is fair to think that in the next few days this token will increase in value by triggering the so-called yield farming, i.e. provide liquidity to the pool, recover the SUSHI tokens, sell/switch them with others in the pool and repeat the process.

In short, the decentralized finance sector (DeFi) does not seem to be stopping and indeed has found in the last period a fertile ground with a lot of new projects that set records every day, just as it is happening with the Yearn Finance token that has broken all sorts of records.

Alfredo de Candia
Alfredo de Candia

Android developer for over 8 years with a dozen of developed apps, Alfredo at age 21 has climbed Mount Fuji following the saying: "He who climbs Mount Fuji once in his life is a wise man, who climbs him twice is a Crazy". Among his app we find a Japanese database, a spam and virus database, the most complete database on Anime and Manga series birthdays and a shitcoin database. Sunday Miner, Alfredo has a passion for crypto and is a fan of EOS.

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