Published
2 years ago on
February 28, 2022
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Andre Cronje has dismissed reports of a bug in the Solidly protocol that could potentially lead to loss of user funds from the platform.
Solidly Users Claim Loss Of Funds
Users of the newly launched Solidly exchange platform have been talking about a security flaw in the protocol’s smart contracts. According to them, the bug is causing a loss of funds from the liquidity pools. One such user, going by the pseudonym NiQlaus has claimed that they have lost around $21,000 worth of the Fantom (FTM) token in a Solidly transaction. Furthermore, they blamed the lack of verification on the liquidity pool behind this loss of funds.
NiQlaus stated,
“I have lost all my funds in a Solidly transaction. When the transaction executed, it returned 0.01% of what I should have received. It seems the exchange chose a stable liquidity pool [LP] without liquidity when there was another variable LP with all the liquidity. It means there is no verification of the LP liquidity when the AMM automatically selects stable or variable LPs, without any possible user intervention.”
Another user claimed that they lost funds worth around $24,000 because of a faulty swap between stablecoin USDC and FTM.
Cronje Denies Security Flaw
However, Andre Cronje, popular DeFi architect and the creator of the Solidly Exchange, has dismissed all claims of fund loss from Solidly liquidity pools. In conversation with BeInCrypto, Cronje claimed that no bugs had been detected in any of the live smart contracts. He also specifically addressed the claims made by NiQlaus, stating,
“That’s the only thing that has happened, and that’s due to users not confirming their output received. They then trade through low liquidity pools. This is not a loss of funds in liquidity pools. This is simply users trading via pairs that don’t have liquidity, which again, is nothing on the protocol level.”
Trouble At Launch
Despite Cronje’s assurances, it is interesting to note that this is the second time Solidly has been in the news for less than ideal reasons. The first time was the controversy surrounding its launch, where users were left frustrated due to confusion stemming from a power struggle between Solidex and 0xDAO. It all started when Cronje had distributed ownership to top Fantom protocols based on TVL, leading to a struggle between the two teams on Fantom. Even though 0xDAO emerged stronger, the team announced that they were not ready for the launch. Users turned towards Solidex in light of this announcement. However, top pools on Solidex were not providing any rewards, and liquidity providers were going empty-handed. Because of the immutable and non-upgradable nature of the smart contracts on Solidly and Solidex, the issue cannot be resolved entirely. The Solidex team is instead looking to ways to mitigate the problem.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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