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Detail Analysis

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Date:

Status:

Count:

Contributor:

May 2, 2021

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Verified

1

zerofriction.io

Loss Amount:

30,000,000

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Recovered Amount:

-

Currency:

Dollars

KYC By:

Audit By:

None

Certik

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Key Indicators

Platform:

Type:

Category:

Method:

Binance Smart Chain

Protocol

Contract Vulnerabilities

Extended Method:

Logic error, use slippage correction mechanism

Data Sources:

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The target of the accident was Spartan Protocol, a DeFi protocol for synthetic assets running on BSC. When diving into the detailed source code, we can see it is a tweaked version of the UniswapV2 protocol. Specifically, the fee mechanism is modified to incentivize liquidity providers when liquidity is scarce. As a result, users trading larger volumes are charged more fees. Almost all main assets on BSC (e.g. BNB) have corresponding UniswapV2-like pairs (e.g. WBNB-SPARTA). Similar to UniswapV2, those pairs are open for users to add/remove liquidity. For example, Alice is able to send (WBNB+SPARTA) into the WBNB-SPARTA pool and get SPT1-WBNB LP tokens back, redeemable for the underlying assets. The loss amounted to about 30 million U.S. dollars.

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DISCLAIMER: While Zero Friction LLC has used the best efforts in aggregating and maintaining this database, Zero Friction LLC makes no representations or warranties with respect to the accuracy or completeness, and specifically disclaim any implied warranties of merchantability or fitness for any particular purpose. 

Under no circumstances, shall Zero Friction LLC be liable for any loss of profit or funds, any regulatory or governmental penalties, any legal costs, or any other commercial and non-commercial damages, including but not limited to special, incidental, consequential, or other damages from any or all usage of the dataset or information derived from our database.