{"id":29322,"date":"2022-06-08T11:25:38","date_gmt":"2022-06-08T15:25:38","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29322"},"modified":"2022-06-08T11:25:48","modified_gmt":"2022-06-08T15:25:48","slug":"this-blockchain-was-suspended-after-it-loses-5-million-due-to-bug","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/this-blockchain-was-suspended-after-it-loses-5-million-due-to-bug\/","title":{"rendered":"This Blockchain Was Suspended After It Loses $5 Million Due To Bug"},"content":{"rendered":"\n
After a bug threatened to sap the chain's liquidity, Osmosis, a layer-1 blockchain on the Cosmos network<\/a>, was suspended on Wednesday.<\/h5>\n\n\n\n
\"This<\/figure>\n\n\n\n

Validators intervened to stop block production after discovering a new bug that allows users to gain 50% extra when withdrawing their deposits from a liquidity pool.<\/p>\n\n\n\n

Users took advantage of this and threatened to deplete all of the chain's liquidity. But Osmosis was able to stop the chain in time, minimizing its losses to roughly $5 million. During the procedure, ATOM and OSM tokens were withdrawn.<\/p>\n\n\n\n

According to data from DeFi Llama,\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> the protocol is the 83rd largest DeFi player by total value locked, with around $212.8 million. Its TVL has dropped by 1.7% in the last 24 hours, likely reflecting the bug.<\/p>\n\n\n\n

Osmosis is attempting to recover from the crippling loss <\/h3>\n\n\n\n

A Reddit user on Osmosis' official subreddit<\/use><\/svg><\/span><\/a> was the first to notice the bug. While Users initially dismissed the report, they immediately changed their minds after trying it themselves.<\/p>\n\n\n\n

Considering the bug's nature, it could completely drain Osmosis' liquidity pools. However, the loss appears to be limited to $5 million.<\/p>\n\n\n\n

Liquidity pools were NOT \u201ccompletely drained\u201d. Devs are fixing the bug, scoping the size of losses (likely in the range of ~$5M), and working on recovery.<\/p>\n\n\n\n

\u2013Osmosis\u2019 official Twitter handle <\/use><\/svg><\/span><\/a><\/p>\n\n\n\n

The bug was discovered just after the V9 Nitrogen upgrade went live<\/use><\/svg><\/span><\/a> on Tuesday. Osmosis has been halted at block #4713064, according to a validator.<\/p>\n\n\n\n

The OSM token has lost roughly 7% amid pilfered actions<\/h3>\n\n\n\n

The blockchain's native token, OSM dropped approximately 7% after the report of the bug. Users who took advantage of the flaw seem likely to have dumped their stolen tokens.<\/p>\n\n\n\n

OSM is currently trading at $1.06, a record low. The Cosmos native token, ATOM, has also dropped 1% in the last 24 hours.<\/p>\n\n\n\n

Due to their exposure to the Terra crisis<\/a>, the value of Osmosis and Cosmos has plummeted this year. Previously, Terra was the largest project on the Cosmos network.<\/p>\n","protected":false},"excerpt":{"rendered":"

After a bug threatened to sap the chain’s liquidity, Osmosis, a layer-1 blockchain on the Cosmos network, was suspended on Wednesday. Validators intervened to stop block production after discovering a new bug that allows users to gain 50% extra when withdrawing their deposits from a liquidity pool. Users took advantage of this and threatened to […]<\/p>\n","protected":false},"author":32,"featured_media":29327,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[81],"tags":[10444],"class_list":["post-29322","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-altcoin-news","tag-osmosis"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/osm-hack.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29322","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29322"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29322\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29327"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29322"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29322"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29322"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}