Andre Cronje dismissed the alleged bug report for his new DeFi project on February 27th.
This is because the protocol has accumulated a total of $ 2.24 billion in Locked Value (TVL) 72 hours after its launch.
Users are dissatisfied with the security flaws in Solidly Exchange smart contracts. This caused the funds to disappear from the liquidity pool.
One user, identified only as NiQlaus, claimed to have lost $ 21,000 worth of Phantom (FTM) tokens while trading on the exchange.another Said They lost about $ 24,000 after a failed swap attempt between Stablecoin USDC and FTM.
“I lost all my money in a Solidly transaction,” lamented NiQlaus on a ticket logged using Solidly support on Github. “When the transaction was executed, it returned 0.01% of what I should receive.”
“The exchange seems to have chosen a stable liquidity pool. [LP] No liquidity if there was another variable LP with all liquidity. This means that if AMM automatically selects stable or variable LPs without user intervention, there is no verification of LP liquidity, “he complained.
“No money lost”
Andre Cronje, a star DeFi architect famous for creating Yearn Finance and Keep3r V1, told BeInCrypto that Solidly’s liquidity pool “will never run out of money.”
“No smart contract bugs have been identified in any of the live contracts,” he said in a Telegram chat.
Regarding the NiQlaus case, which appears to have lost nearly $ 21,000 on the platform, Cronje argued:
“This is the only thing that has happened because the user did not see the output received. It is then traded in a illiquid pool. This is not a loss of liquidity pool funds. This is just a user trading through an illiquid pair, which is also nothing at the protocol level. “
What is Solidly?
Solidly was officially launched on the Fantom blockchain on February 24th as an automated market maker (AMM). This is a way to allow traders to trade when there is no purchase order as a source of liquidity.
The basic importance of Solidly is that Cronje aims to create a token ecosystem that is more efficient, pays 100% to those who lock their assets, and is more sustainable over the long term. .. A project that is currently controlled by a protocol rather than by a liquidity provider as in the case of DeFi.
Combine Olympus DAO’s rebased token mechanism with ve tokens from protocols such as Convex and Curve to take full advantage of the escrow (ve) token economy you already have. With rebased tokens, investors are free to bet tokens and list them on the open market for sale. It tends to increase supply and lower prices.
Cronje says this should not be incentive. Instead, you need to pay the incentive to the user who locked the token. There is no better way to do so than the tokens you already have become non-fungible tokens (NFTs) and can be sold in the secondary market.
These tokens give voting rights, and the more governance tokens a protocol has, the more power it has over a particular protocol. Liquidity providers are paid in the form of tokens called SOLIDs.
The platform takes into account some of the lowest rates for swaps between assets in the DeFi sector. Investors have been eagerly awaiting the launch of Solidly since Cronje first hinted at the project in early January, and have been accumulating since the project launched last Thursday.
At the time of writing, Solidly had accumulated over $ 2.24 billion in total locked values (basically the total assets currently managed under the protocol), according to data compiled by DeFiLlama. ..
Not a big deal
Brian Passfield, chief technology officer for fringe finance in the decentralized money market, told BeInCrypto that the launch of Solidly is “a mix of positive and negative highlights.” This wasn’t surprising.
He said it was a “trend that characterizes the emergence of some innovative projects.” “The team behind the project is likely to understand and implement security procedures in the blockchain space, so we know the drill for proper checks before launching the protocol.”
Continuing, Pathfield said:
“Repeat, this shows that security should continue to be DeFi’s top priority. We can and should create incredible financial opportunities. But it never sacrifices the user’s money. “
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