Decentralized auditing platform Code4rena identified an exploit in an upcoming patch of the DittoETH algorithmic stablecoin platform. The exploit, if exploited, could have led to excessive profits for a user with a large token deposit, resulting in increased bad debts and jeopardizing the platform's survival. The vulnerability has been addressed in a newer test version, preventing its inclusion in the production release. Code4rena, a crowd-sourced auditing platform, facilitates the discovery of vulnerabilities by participants in exchange for rewards from Web3 protocols. A flaw in DittoETH's reward distribution mechanism was discovered by a Code4rena warden, leading to the creation of significant debt through a mathematical error. The potential exploit was successfully demonstrated, highlighting the importance of thorough auditing in preventing DeFi vulnerabilities from being exploited in live environments. Read more AI-generated news on: https://app.chaingpt.org/news