Key Points:

  • Twitter users said that Stargate (STG) is suspected of having a loophole that whales can use many times for profit.

  • A whale has cheated 200 times to profit from this liquidity imbalance error from $1000-$2000.

  • The cause was determined to be an imbalance of USDC, USDT, and the EQ bonus offered.

According to a warning from a Twitter user, the Stargate (STG) cryptocurrency appears to have a bug causing a liquidity imbalance that makes whales able to profit from $1000-$2000.

As said by Twitter user @BofkUR, Stargate seems to have a bug. Big players can earn 1000-2000U every time they cross-chain using this bug.

stargate好像有个bug，大户利用这个bug每次跨链都能赚1000-2000U。看他操作是先添加几百万U到流动池中，然后马上取消让流动池失衡，接着在取消的同一个区块跨链。他最近已经交易了200多次了。0x013b646fe54562a3ff6e3469fcc8c4efc2337656 pic.twitter.com/mze9HtLEd5

— zhouzhou (@BofkUR) May 25, 2023

As discovered from a whale’s activity, he is adding several million USDT to the traffic pool, then aborting it immediately to make the traffic pool unbalanced, then cross-chaining in the same block has canceled. He has traded more than 200 times recently.

Another user looked at the cross-chain between liquidation removal and final token receipt. The prediction could be that after the liquidity is added, the pooling ratio of both sides is out of balance. At this point, if there is an EQ Reward across the chain, also, USDT and USDC are not 1:1, and USDT will sometimes be higher. These two things could be the reason for this gap.

看了下移除流动性和最终收到代币中间发生了跨链。猜测可能是添加流动性后，两边池子比例失衡。这时候如果跨链会有 EQ Rewards，另外本身 USDT 和 USDC 不是 1:1 的，USDT 有时候会高出一些，这两者可能是导致有这个 gap 的原因。不过很奇怪的是为什么会有这个时间差呢？ pic.twitter.com/bbXRTuGwFP

— Palmer (@Palmer0x87) May 25, 2023

The Stargate Finance cross-chain bridge proposes to reissue all STG tokens after the impact of attacks targeting Alameda Research. This information once caused the price of STG token to rise sharply.

The Stargate cross-chain bridge proposed to reissue new STG tokens on March 15th and send them to all STG holders to eliminate the risk of illegal STG transfers from corrupted Alamada wallets.

However, on March 11, the unit behind Stargate Finance, the Stargate Foundation, suddenly proposed to cancel the token issuance plan. The Stargate Foundation revealed that it had been contacted by the bankruptcy unit that took over the FTX exchange. It said that any action affecting the exchange’s assets would violate US bankruptcy regulations. If the project still wants to reissue tokens, the bankruptcy unit will take legal action against Stargate.

The Stargate DAO community then had to conduct another vote, coming to a consensus that the intention to reissue STG should be canceled and continue to use the old token.

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