LodeStar Finance Rekt For 7 Million

In the latest edition of YIYL (You Invest, You Lose) we head back to the DeFi dumpster fire where failures are commonplace and most people end up losing money because they have no idea how to do basic math and risk management.

If your calculation of a good investment is how high the interest rate is, or how low the borrowing costs are, you are a moron that doesn't deserve to hold on to those funds, and it's rightly taken away from you.

Lodestar a new shitcoin project on ETH second layer remora chain Arbitrum launched this month and didn't take long to fail that launch. It's really pathetic to see, since most of these projects are copycats of another project as you can tell from their generic USP which is the aim of bringing critical DeFi primitive of decentralized money markets to Arbitrum cryptocurrencies like MAGIC, DPX, and plvGLP.

So basically lending against shitty assets and trying to yield farm and route exchanges between assets pegged on Arbitrum of which there isn't that much so how do you fuck it up?

Well LodeStar did.

Hacked out the back

The Arbitrum-based crypto lending platform Lodestar Finance was attacked by an exploiter who was able to manipulate the price of the plvGLP token, allowing them to "borrow" the entire available liquidity of the Lodestar platform with the inflated token.

From the sound of it, it looks like a combination of an oracle exploits with a flash loan attack and it seemed to have worked out well for the user who found the loophole.

The attacker made around $6.4 million in profit. Some of the stolen tokens were burned—hence the difference between the attacker's profit and the loss to the platform.

Recovery in process

According to Lodestar, they think they may be able to recover around $2.4 million of the stolen funds. Meanwhile, they have attempted to contact the thief to try to negotiate the return of stolen funds.

"We will generously reward your collaboration," they wrote on Twitter.

So basically offering him a settlement/bug bounty if the user returns the funds, but why do that if I can tumble it and make bank after the MEV nails my profits?

I guess some just don't want the heat and opt for the plea option, so let's see which one this guy or girl goes for, my guess is the plea is the easier option.

Since you don't have to worry too much about being able to trade your profits on centralised exchanges should you wish to take profits.

https://twitter.com/LodestarFinance/status/1601686921566375936

Talk about the price

The price of the token has dumped from $0.718928 two weeks ago, holders have enjoyed a quick 81.7% correction in the price down to the current range of around $0.13. This is based on a market supply of 1,198,804, which has seen a 500k market cap turned into a $150k market cap.

So it's safe to say this shitcoin is rugged and ain't coming back anytime soon. If a project gets rekt within a month of it launching, it's not very likely that people are going to put money into it and believe in the bullshit yield they're offering as compensation for the risks you're taking.

Lodestar price chart - Source: coingecko.com

Personally, I say keep shitcoining, if you have a high-time preference you should swing for the fences and once you clear out all your positions, you can finally give up those dreams and get back to the real world and start focusing on a job.

Eventually, we all have to grow up, how poor you want to grow up, that's up to you.

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

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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 @chekohler and subscribe to my fanbase

Earn Free bitcoin & shop	Earn Free Bitcoin & shop	Claim Free Bitcoin & Shop

Posted Using LeoFinance ^Beta