Osmosis network lost $5 million due to bug in its liquidity pool

The vulnerability allowed to increase the sum of funds withdrawn by 50%

08.06.2022 - 11:05

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What’s new? On June 8, the Osmosis network was suspended by developers and validators after a liquidity pool exploit. One of the users deposited funds into the pool and then immediately withdrew them, however, because of the bug, the sum of assets increased by 50%. The developers reported that the vulnerability was detected and fixed.

Update: The bug has been identified and a patch written.More testing is underway before validators are recommended to coordinate a restart.Full bug report and action plan for more thorough and proper end to end testing of chain upgrades to follow in coming days. https://t.co/DjJMOEQxrT— Osmosis 🧪 (@osmosiszone) June 8, 2022

What else did the developers say? The Osmosis team reported that the amount of damage was about $5 million, and also denied that the liquidity pools were completely depleted. Testing is currently underway on the network, after which validators will be recommended to coordinate a restart.

One of the first to point out the bug in the liquidity pools was a Reddit user, but his post was removed by a forum moderator.

What is Osmosis? It is a blockchain with the native token OSMO built in the Cosmos ecosystem. The network also operates a decentralized crypto exchange(DEX). According to CoinGecko, OSMO is trading at $1,08 as of June 8, 11:00 UTC. Its rate has fallen by 4,4% in the past 24 hours.

On June 7, hackers broke into the Elrond (EGLD) network and stole more than $1,65 million worth of the platform’s native tokens. The alleged cause was a vulnerability in the liquidity of wEGLD and EGLD smart contracts.

The attackers sold part of the stolen assets on the decentralized exchange Maiar, causing the EGLD rate to plummet by 91,5% from $75 to $6,4 on this platform. Maiar had to suspend the operation of the platform and its related APIs.

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