Recently, the platform has been attacked by arbitrage bots that are created specially to damage the stable workings of yield farming projects that are rising in popularity. That’s why the SpaceSwap team decided to temporarily turn off the Blender option to solve the problem.
Why are arbitrage attacks happening?
The aim of trader arbitrage bots is to lower coins’ liquidity. They use the price difference between SHAKE generated through Blender and the one on the Uniswap platform.
Unfortunately, the price struggles to keep pace as all the transactions are happening within 1 block.
That’s what actually happened to Harvest Finance and many others. The intruder launched an arbitrage attack using a large flash loan and hacked for $24 million. The project stated that the attacker “manipulated prices on one money lego (curve y pool) to drain another money lego [farm USDT (fUSDT), farm USDC (fUSDC)], many times. The attacker then converted the funds to renBTC and exited to bitcoin.”
A lot of projects are facing millions in damages. However, the SpaceSwap team did well and improved the system quickly.
It’s always been important to us to maintain the profound stability of the SpaceSwap ecosystem. If one part doesn’t work effectively, the other ones will be influenced as well. That’s why our team is working day and night to maintain the security of SpaceSwap.
Open the MILK2-ETH pool on Uniswap and click on the ‘Trade’ button to buy MILK instantly.
For more information, check out GitHub or contact the SpaceSwap team:
https://spaceswap.app/
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Twitter: https://twitter.com/spaceswapdefi
Blog: https://blog.spaceswap.app/
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