Cryptocurrency

bZx: a bot and a contract smart to win $ 500,000 in DeFi

A new episode is controversial for the environment of the finances decentralized (DeFi) has as its protagonist the platform bZx and its newly launched token BZRX, which went on the market this Monday, July 13, through the platform of Uniswap.

The controversy began when Roman Storm, of the firm of cybersecurity PepperSec, published on Twitter about the case. The message of the Storm described the formula by which a user had won half a million dollars in 30 minutes taking advantage of the launch of the token.

According to published Storm, a user wrote a contract smartphone that would run the purchase of 650 ether (ETH) in the token bZx hardly possible in Uniswap. In the first operation, the user bought in total 1.966.111 BZRX. A few minutes later, he was running several sales transactions of its funds in XBRZ, with the price already above.

To that point, the price of the token was higher and in total received 2.680 ETH, with a profit margin of 2030 ETH over 300,000 BZRX not sold. In total, the gains exceed $ 500,000. The investment amounts to little more than USD 155.000, according to the price of ETH at the time of drafting of this note.

A bot: automated operations at maximum speed

The user used a bot that executed several transactions to ensure that your purchase order entered. This bot, in turn, used a contract smart typed by the user that would trigger the action of purchase just give the launch of the token.

That is to say, more than a vulnerability or a flaw in the system, this user took advantage of the automation of their operation to ensure the purchase of the token just was launched. Thus, the user in a matter of minutes managed to buy at the lowest possible price to then sell, taking advantage of the demand of buyers to exit their BZRX at a higher price. All this happened in half an hour.

In part, the complaint Storm about what happened seems to arise that he tried to do something similar, but without success. In another message on the social network, the tweeter admits: “My bot failed, that’s why I was curious as to why it happened”.

Later, Storm claimed that their attempt failed by slowness of synchronization of your bot. Also, noted to have lost “something of ETH” in their attempt. “I lost my intruding in this token it manually and then sell it,” he said Storm.

bZx responds: “there is more than an exchange successful”

The “incident”, as I called him Storm, has been regarded by some critics to the protocols DeFi as a new sample of the failures of this type of platforms.

However, the bZx has appeared on Twitter, claiming that what happened is not but an activity of exchange any, in which the user obtains great benefits.

According to the platform Defined, the summary presented by Storm could have been avoided simply by saying that someone made a lot of money in a short time because they “bought cheap and sold expensive.”

From bZx is argued also that the user could have lost a lot of money if the price would have gone down or if people would have stopped buying the token. “Even we didn’t know how it would move the price,” wrote the Twitter account of the platform.

“There were and there are 135 million of supply current that could be sold in those thirty minutes. Thirty minutes is a lot of exposure directional. They made a good exchange, nothing less, nothing more”

bZx, platform finance decentralized (DeFi)

bZx and its antecedent negative

The controversy is not new to bZx, which was in the eye of the hurricane at the beginning of this year. As reported Breaking News, in the month of February, this platform is DeFi suffered two attacks, which resulted in losses close to a million dollars in total.

The situation was seen with bad eyes in the ecosystem of the cryptocurrencies, especially after you come out into the light of a report according to which the platform had been alerted about the vulnerabilities a month before they occurred the attacks.

Around the DeFi there are several controversial, such as the “boom” Yield Farming, a mechanism by which users are taking advantage of the interests of lending platforms to generate high profits.

The output of the token COMP, of the platform loans Compound, shot the practice, to the point that the own Compound, was forced to change the distribution mechanism of the COMP among its users, has outlined Breaking News at the beginning of July.

About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

Do NOT follow this link or you will be banned from the site!