tl;dr
A Degen Chain user lost 90% of their assets, totaling 785,000 DEGEN, due to a cross-chain transaction issue. The transfer from DEGEN to Base encountered problems due to poor liquidity in previous chain transactions, sparking reactions from the crypto community. The user highlighted the use of the wr...
A Degen Chain user lost 90% of their assets, totaling 785,000 DEGEN, due to a cross-chain transaction issue. The transfer from DEGEN to Base encountered problems due to poor liquidity in previous chain transactions, sparking reactions from the crypto community. The user highlighted the use of the wrong bridge and confusing interface.
The incident was linked to a scarcity of ETH in the DEGEN/ETH pool, leading to slippage. The company took responsibility and promised affected users a full refund. They also announced upcoming changes to improve service.
A Farcaster user, Tempe.degen, lost 90% of assets while using the Bridge. Before cross-chain transactions occur from DEGEN to Base, the asset must be converted to ETH on the DEGEN Chain. Subsequently, the asset moves to Base and is reconverted to DEGEN before being sent to the user addresses.
Tempe.degen highlighted that the chain didn’t use the right bridge and the user interface was confusing. The issue arose from the DEGEN/ETH pool as there was a scarcity of ETH spurring the slippage. Poor liquidity is a major problem for some pools as DeFi founders look for ways to improve the situation across the board.
Meanwhile, in a swift reaction, the company acknowledged the incident noting that bugs like these should never happen within the system while assuring affected users of a full refund. Furthermore, the platform highlighted the terrible service from providers while taking responsibility and assuring the community of changes. These changes will include a shake-up in the coming weeks to get the best service possible.