In today's edition of YIYL, (You Invest, You Lose) we head back to the oh-so-magical world of DEFI where yields are made up and the only ones really profiting are those selling you on buying into the yield product as you become their exit liquidity.
While Ethereum remains the primary place for ponzinomics to play out, BNB has been no stranger to it with smaller-time scams running it due to the lower fees and the ability "wrap" your shitcoin into BNB making it easier to port over your make-believe money.
While most of the drama around shitcoin land revolves around the flow up of FTX, DEFI is still going, yes the unstoppable code and permissionless smart contracts are holding on to what Liquidity probably from VCs and some portion of retail that have serious tolerance for pain.
If you are still participating in this space, you're either hoping for a massive moon shot or you're so deep in the hole you don't really care anymore what is one more loss, am I right?
So who was the unlucky gambler this time? Well, Ankr ofcourse!
Ankr'd and going down with the ship
Ankr, another make my own token out of thin air and attach it to my services platform was brought down this week. Their claim to game is that they are the first ‘node-as-a-service’ platform, that allows for liquid staking across ETH rip-offs BNB, MATIC, and AVAX.
THey also offer various SDKs you can pay for and build your own web3 projet so you can easily scam others and then use their platform to pull out some of that sweet exit liquidity.
Anyway the scammers got scammed as Ankr suffered a multi-million dollar exploit due to a bug in its code that allowed for unlimited minting of its token.
https://twitter.com/lookonchain/status/1598499855412121600
- lookonchain
The BNB Chain-based Ankr defi protocol suffered an exploit of their aBNBc token, a wrapped version of BNB that works in their system. After the attacker used a command to mint 6 quadrillion of these tokens, they then bridged and tumbled at least 20 trillion of the aBNBc token for BNB, then move it to Tornado Cash.
That netted them a cool $5 million in USD from the exploit before the announcement was even made.
"We are currently working with exchanges to immediately halt trading," they wrote. However,
https://twitter.com/ankr/status/1598503332477280256
- ankr
According to PeckShiled suggested the contract had an unlimited mint bug, allowing arbitrary minting of aBNB tokens. The attacker, and possible subsequent copycat attackers, used this flaw to mint quadrillions of aBNB, which they then traded to various other tokens.
https://twitter.com/peckshield/status/1598508401755144196
- peckshield
Talk about the price
As the hacker has nearly completely drained the aBNBc liquidity pools on PancakeSwap and ApeSwap, the token has lost nearly 99% of its value, which is meant to be pegged to the price of BNB, so if you're holding this derivative of BNB you're shit out of luck, and again showing you why wrapped tokens are dog shit wrapped in cat shit.
As for the price of Ankrs native token, it has taken a bit of a wobble falling from around $0.0225 to as low as 0.021, which is only like a 7% drop in what has already fallen like 90+% in the bear market so do you really care at this point? You can effectively make your position to zero long ago, so why mark it as anything else now?
In steps CZ
Ankr being the "decentralised" service it is immediately went crying to exchanges to block trading and said it will re-issue the tokens after assessing the situation. Oh how very decentralised of you, blacklisting certain tokens and then minitng new ones to bail out your users. It almost seems like a centralised actor conducting a bail-out, but that can't be right?
This is decentralised, lol!
Since this is a BNB-based project Binance CEO Changpeng Zhao also mentioned they would step in when he tweeted that his exchange had frozen $3 million, which had been sent to his exchange by the hackers.
https://twitter.com/cz_binance/status/1598575867311132673
- cz_binance
We assume that he will be handing back those funds to the Ankr team so they can have some backing to keep their shitcoin running and repair their treasury of synthetic BNB bullshit tokens.
Sources:
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Have your say
What do you good people of HIVE think?
So have at it my Jessies! If you don't have something to comment, "I am a Jessie."
Let's connect
If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me
| Earn Free bitcoin & shop | Earn Free Bitcoin & shop | Claim Free Bitcoin & Shop |
|---|---|---|
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