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BlockchainSolidly Denies Security Issues, after hitting $2.24B TVL

Solidly Denies Security Issues, after hitting $2.24B TVL

Intro

Solidly, which was launched on Fantom blockchain as an automated market maker (AMM), on
24 February, which in a nutshell is a technique that allows its traders to trade in the absence of
an order book as a source of liquidity and Security.

So, The developer and the front face of Solidly, Andre Cronje on Feb 27 dismissed reports alleging a
bug in his new Defi project could have allowed user funds to disappear from liquidity pools.
This news came after the protocol amassed as much as $2.24 billion in total value locked (TVL)
in just three days after its initial launch.

Describtion

Then, Users on the platform have opened up tickets and complained about a security flaw in the Solidly
Exchange smart contracts. This flaw has led to funds disappearing from liquidity pools for many
users on the platform. Meanwhile, Andre Cronje has denied that there is a flaw in his Solidly Exchange smart
contracts.

One user, Nicklaus, claimed to have lost about $21,000 of the fantom (FTM) token during a
transaction on the exchange. Another said they lost about $24,000 after a botched swap attempt
between the stable coin USDC and FTM.

More about

“I have lost all my funds in a Solidly transaction,” Nicklaus wrote, in a ticket logged with Solidly
support on Github. “When the transaction was executed, it returned 0.01% of what I should have
received. It seems the exchange chose a stable liquidity pool [LP] without liquidity when there
was another variable LP with all the liquidity. It means there is no verification of the LP liquidity
when the AMM automatically selects stable or variable LPs, without any possible user
intervention,” he complained.

Andre Cronje, the star Defi architect famed for creating Yearn Finance and Keep3rV1, said that
“there are zero funds disappearing” from Solidly’s liquidity pools. “There have been no smart
contract bugs identified in any of the live contracts,” he said via a chat on Telegram.

Referring to the NiQlaus incident, which supposedly lost nearly $21,000 on the platform, Cronje
asserted, “That’s the only thing that has happened, and that’s due to users not confirming their
output received. They then trade through low liquidity pools. This is not a loss of funds in
liquidity pools. This is simply users trading via pairs that don’t have liquidity, which again, is
nothing on the protocol level.”

Conclution

Brian Pasfield, chief technology officer of decentralized money market Fringe Finance, said that
while the launch of Solidly “has been laced with a mixture of positive and negative highlights,”
this was not surprising. He also added that “Once again, this shows that security is and should
remain DeFi’s number one priority. We can and should create incredible financial opportunities,
but never at the cost of users’ funds.”

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