How To Find WHALE Addresses Using Etherscan
Whales attack new DeFi protocol with arbitrage deals on its launch day
The launch of the Saddle Finance platform – a clone of Curve – immediately attracted whales to it
Arbitration deals have brought fabulous profits to big players
Early liquidity providers likely suffered losses
Immediately after launch, Saddle Finance’s new DeFi protocol was attacked by large arbitrage traders who rushed to warm their hands on it..
On the evening of January 19, a new protocol in the decentralized finance (DeFi) segment – Saddle Finance was launched on the market. As a priority, the project developers identified the fight against the problem of spreads between stablecoins and tokenized (wrapped) cryptoassets. However, within hours of its launch, the new protocol fell prey to the whales, which were able to make huge profits through arbitrage transactions..
The launch turned into a feast for whales
Analyzing the incident, the Rekt blog noted:
“Any investor who supports Saddle Finance prefers profit over progress. Why Fund a Fork In the cryptocurrency world, a fork is essentially a change to the blockchain protocol. Since cryptocurrencies operate on decentralized networks, all parties … More offering zero innovation? “
Some things are better left alone.
Raise $ 4.2m, copy the code from @CurveFinance, and get rekt.
Any investor that backed @saddlefinance values profit over progress.
Why fund a fork with zero innovation? Https: //t.co/wUsDeoLrCa
– rekt (@RektHQ) January 20, 2021
What do you think about the situation around Saddle Finance? Share your opinion in the comments and join the discussion in our Telegram channel!
Saddle Finance is a fork of Curve Finance and uses the Synthetix DeFi protocol on the Virtual Synths system. This system is designed to support large trades with minimal slippage across all supported assets. Currently these are stablecoins and various versions of wrapped Bitcoin.
Of course, the new platform attracted speculators, and the Saddle Finance team has already admitted that in the first minutes after launch, “some of the first transactions were executed with high slippage.”.
According to the Rekt Blog, users who deposited into Saddle Finance in the first hour after launching the platform will no longer be able to fully get their entire deposit back..
“At least three major arbitrage players received over 7.9 BTC ($ 275,735) from early liquidity providers within six minutes.”.
So, one trader was able to exchange 0.343 sBTC (token tied to bitcoin) As the use of cryptocurrencies grows, new types of tokens appear. They can personify value or something intangible, such as votes. Two … More on Synthetix) for 4.362 wBTC, although theoretically the exchange should have been done in a 1: 1 ratio. As a result, this arbitrage deal brought the whale a profit of approximately $ 150,000..
In addition, two more similar transactions were registered on the platform, which also turned out to be extremely profitable for traders. As analyst Igor Igamberdiev commented, as a result of one of the transactions, the trader exchanged 0.09 tBTC for 3.2 wBTC, which allowed him to get 35 times profit.
Before launching, the Saddle Finance project successfully passed the audit, however, as it turned out, this could not protect it from whale arbitrage transactions. This incident undermines the foundations of the DeFi industry Decentralized finance (DeFi) – this is financial services, built on blockchain technology, which offer users access to an open, efficient and … More, as he clearly demonstrates how easily it can be exploited for their own purposes by whales.
However, the Rekt Blog analysts were even more outraged by the fact of the Curve code cloning:
“You can’t forbid monkeys from monkeying, but you can at least take care of the consequences. Perhaps this was all part of Saddle Finance’s marketing plan. If any ad is considered good, then they probably got it. However, the first investors had to pay for such a dubious promotion ”.
Saddle is far from the first example of a clone to appear in the DeFi segment. Meanwhile, predatory whales are always ready in anticipation of new easy money. And, unfortunately, this alignment is not able to improve the image of DeFi as an industry that owns the future of finance. Rather, such incidents will only heighten the ire of regulators..
All information, contained on our website, published in good faith and objectivity, and for informational purposes only. Reader bears full responsibility for any actions, committed by him on the basis of information, obtained from our website.