Not long ago, SushiSwap earned the tag of an “exit scam”. Despite several controversies, the decentralized finance [DeFi] platform has performed significantly well. In a recent development, the once infamous vampire protocol of Uniswap appears to have dodged a high-profile attack on its platform.
According to reports, an anonymous entity allegedly poked a hole in SushiSwap smart contracts and swindled approximately $15k before the team of the AMM [automated market maker] exchange headed by developer 0xMaki took steps to mitigate it.
Possible @SushiSwap exploit found? @0xMaki sends exploiter a tx with a message to collect bug bounty.
See below 👇
tx with message from 0xMakihttps://t.co/1MdXqw9chq
Exploiters address:https://t.co/ehh7EassCo@DefiantNews pic.twitter.com/fRpdA1j7y1
— JuanSnow (@Juan_Snow1) November 29, 2020
As confirmed on Twitter by 0xMaki, General Manager at SushiSwap, the fraudulent actor siphoned off with $10-15K so far from the 0.05% fees cut of SushiSwap, however, the LP funds are currently safe. SUSHI’s Discord channel also disclosed that the exploit was on the Sushibar for fees. The lost user funds will be covered by the platform’s treasury.
The developer was commended by several in the community for the quick response for not just detecting the exploit, but coordinating a response team, and also close to the identity of who the exploiter was. In one such attempt, 0xMaki sent the attacker a message via a transaction that read, “I see you, we are working on fixing it. Contact me on Discord for a bug bounty.”
Daniel Que, who had previously worked with cryptocurrency exchange Coinbase, tweeted,
“People are sleeping on 0xMaki. Seeing him in action, he’s a capable general manager: from the detection of the exploit to coordinating a response team, and even getting super close to figuring out who the exploiter is.”
The DeFi ecosystem seen several major cases of hack and flash loan attacks over the past several months. SushiSwap crisis aversion was a significant development in the wake of rampant exploits in the space.
SushiSwap has been highly controversial in the DeFi realm especially due to draining liquidity from rival AMM Uniswap. Its Co-founder, known by the alias “Chef Nomi,” did little to help the situation. Shortly after the popularity of the decentralized exchange, the exec liquidated his SUSHI holdings which led to a massive decline in the SushiSwap government token’s {SUSHI] price. Many criticized the move and deemed it as an”exit scam” as the community called Nomi for dumping the project.
But the latest news could finally be the moment where the platform could gain good press.