According to ChainCatcher, Wu said that Farcaster user Tempe.degen said that he lost nearly 90% of his funds (785,000 DEGEN) due to cross-chain using the Degen Chain Bridge website.
There is a huge slippage difference in the DEGEN cross-chain transaction from Degen Chain to Base. The reason is that the cross-chain will convert DEGEN to ETH on Degen Chain, then cross-chain ETH to Base, and then convert it to DEGEN and send it back to the user address. However, due to the poor liquidity of the DEGEN/ETH Pool on Degen Chain, there is very little ETH available, which leads to huge cross-chain slippage. Tempe.degen pointed out that the Degen Chain Bridge does not use the standard bridge and the UI is confusing.
Degen’s official Twitter account stated that Degen L3 is currently in a difficult situation, the service provided by the provider is poor, and interruptions and user fund losses are unacceptable. It will ensure that those affected receive refunds, and major adjustments will be made in the coming weeks.
