DeFi Alchemix Protocol Suspends One of Smart Contracts – Bits Media

Alchemix Decentralized Credit Platform Developers Suspend AlETH Smart Contract Due to Error, which led to the lack of security in the liquidity pool in the amount $6.53 million.

Alchemix platform allows you to take loans in cryptocurrencies on security, Moreover, collateral tokens are placed in liquidity bullets for profitable farming. Percentage, obtained from invested funds, can be used to repay the loan. However, due to an error in one of the smart contracts, users were able to withdraw their pledge without even paying the loan itself. Therefore, the pool was not sufficiently provided with collateral means. The losses of the project amounted to $6.53 million.

“Because of the bug in a smart contract, Aleth tokens holders received 100% your ETH back. This was counted by the system as a full payment of a loan, And therefore, the conclusions of the funds were allowed. All in all, The Aleth pool was not well provided ", - said an anonymous researcher under the pseudonym Faanganon, working for Alameda Research.

Alchemix developers for some time did not receive any information, However, then they reported the suspension of the work of the smart contract, and later published the analysis of the situation. They called on the community to return the ETH errors obtained as a result. The developers also plan to temporarily increase the commissions in the protocol, so that with the help of the profit, cover the “cash gap” in the liquidity bullet. Besides, Part of ETH will be moved from the project storage to the pool to the pool, and part of the DAO tokens will be sold to cover damage.

Earlier on Bits.media, large -scale material entered, which covers the main causes of Defi's hacks and ways to avoid loss of funds.