The Osmosis network was halted by core developers and validators following the emergence of an exploit that may have led to about $5 million being drained from liquidity pools.
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The bug was brought to light by a community member on the Osmosis subreddit, although the post was deleted by the forum’s moderator.
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The exploit occurred when a user deposited funds to a liquidity pool before instantly withdrawing it. The value of the withdrawal was unintentionally 50% higher than the deposit.
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In an update on Twitter, Osmosis wrote: “Liquidity pools were NOT “completely drained”. Devs are fixing the bug, scoping the size of losses (likely in the range of ~$5M), and working on recovery. More info to come.”
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Osmosis is a blockchain that is built on the Cosmos SDK framework, it operates a decentralized exchange that had $11.8 million in daily trade volume before the chain was halted.
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The Osmosis token (OSMO) is 6.96% down over the past 24-hours, according to trades on MEXC.
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