A DeFi trader explained how he took advantage of a mistake in the DeFi project Soft Yearn to convert $ 200 to $ 250,000.
DeFi craze in the cryptocurrency industry continues at full speed. This situation is not expected to slow down in the short term, as many projects whose codes are not audited can freely enter the industry. A DeFi trader, on the other hand, managed to increase his $ 200 investment to $ 250,000 using a mistake in the protocol and admitted this with a tweet he posted on September 8.
Faulty project brought tremendous profit
Trader explained how he turned a small amount into a huge profit in a few tweets and said that he made his big gain with the DeFi project SYFI, which is the copy of Yearn Finance, that is Soft Yearn. An error in the SYFI protocol, which has a mechanism that adjusts the supply on demand, harmed the project.
This person bought 2 SYFI tokens for 0.5 ETH during the FOMO that occurred after the project was launched, but soon saw that the number of tokens increased significantly. DeFi trader stated that the error was an interface bug, and after the number of tokens increased, the price was not adjusted by the ‘rebase’ mechanism and that he was able to sell his tokens even though he thought that transactions would not take place.
Trader wrote in his tweet:
“When 2 SYFIs turned into 15,551 and then the price quote for these tokens was above 740 ETH, I took a breathtaking look at the Uniswap UI. At that moment, I thought, “This is an interface bug… It will feed me for a transaction that will not take place due to insufficient funds.”
Disasters when unmonitored projects occur
These sales may have consumed all liquidity in the pool. Reports also show that the token price dropped drastically after the incident, possibly affecting the project’s investors and protocol development team.
Trader finally said in his tweet:
“I had no intention of hurting anyone. I didn’t want the SYFI team to fail. There has never been malice here. I saw a trade opportunity and took advantage of it. “