Here’s what happened:
I am optimistic about the new public chain #sui, and the project has given a lot of subsidies to its ecological projects. Therefore, users can pledge sui on projects such as scalop and bucket to enjoy high interest. So I pledged all my assets such as Bitcoin and stablecoins on OKX, and borrowed more than 100,000 US dollars of sui, which I put on bucket and scallop.
The interest is collected regularly every day. Before the incident, I could earn about 160 Sui every day. The income here is divided into two parts. One part is the subsidy for mortgaging afsui and lending buck (the stable currency of the project), and the other part is the income from staking buck. The difference between the two is not much. I usually withdraw my income around 10 pm.
I had something to do on July 6th and did not check the agreement income. On the morning of July 7th, I checked the income and found that there was only the storage interest of buck, but no loan subsidy. At first I thought it was a delay in page refresh. I refreshed the page several times, but it still did not appear. Then I realized that something was wrong.
The first thing I thought of was that I might have been liquidated, but I clearly put 10,000 bucks on the 5th to lower my liquidation line to $0.44, which means that as long as the market price of $SUI does not reach 0.44, the afsui I put in the protocol is safe. I checked the lowest prices of sui on OKX and Binance, which were 0.5721 and 0.5728 respectively, far from 0.44. I carefully checked the records of my wallet and there was no record of any theft, sale, or transfer. I also did not find any information in the bucket protocol. I was a little confused for a moment, and I didn’t know what happened? The assets must have been "moved", and I was not sure how much was lost, because I would withdraw the "income" every day, and when the interest rate for borrowing sui on OKX was particularly high, I would pay back part of it, and when the interest rate was low, I would borrow it from the bucket protocol. I felt that I operated it frequently and didn’t pay much attention to how much money I put in the bucket. Now it has become a mess, but it is certain that my wallet has been moved.
The only way was to contact the project owner of the bucket. So I left a message on his Twitter immediately. Fortunately, the project owner left me a message on the same day and asked me to join the discord to explain the details. After repeated communication with the project owner, I was sure that my afsui had been #清算
From the screenshots the project gave me, 86,566 of my afsui were sold. First, I changed it to #sui, then I changed sui to usdc, and then I changed usdc to buck, and finally I got 51,808 bucks. The selling price was 0.6 US dollars. After deducting the so-called soft liquidation, I still had 33,307 afsui and 50,400 bucks in my account. After I figured out the reasons and losses, the market price of sui had risen to 0.69u. When I wrote this article, the price of sui was already 0.73u (7.10, 6:40). You should know that the sui in my hand was borrowed from the exchange, and I had to pay back the borrowed amount, which was 132,000, and I only had 33,307 afsui and 50,400 bucks left for me by bucket.
The project team explained to me that "Recovery Mode is a necessary security and stability mechanism in the BUCK protocol to ensure that $BUCK will not be decoupled when extreme market conditions occur." Yes, I did not understand recovery, but as a user, I just stared at it. Own line of reckoning. In the end, the project team was willing to compensate me 3,000buck.
My loss was far more than 3000u! The actual loss was 13700u. Because I was based on sui, and the large amount of AFsui I bought at a high price was exchanged for stablecoins, and the sui I borrowed from the exchange had to be repaid.
To be honest, I don’t have the “bargaining power” with the project party, so I will take the compensation first.
I do see a certain sincerity on their part, it's not a complete "Ponzi scheme".
It's all tears to talk too much. The lesson this time is profound. Don't just focus on the interest. Behind the high interest is the invisible risk of losing the principal.
After staying in the cryptocurrency circle for a long time, all the lessons are learned through blood: making money is not the first priority, keeping the principal from being lost is the first priority, and having principal is the capital for making a fortune.
I thought the protocol was relatively safe, but it still taught me a lesson. I hope that the leeks will learn from it. If you play a non-head project, you must study it carefully.
