Synthetix Reverses Oracle Error-Caused Misplaced sETH in Exchange for a Bug Bounty
Helen Partz's original article for cointelegraph.com reduced by 43%
Following a recent oracle issue, asset issuance platform Synthetix will reverse the misplaced 37 million synthetic ether in exchange for a bug bounty, Synthetix founder Kain Warwick stated on June 25. According to the statement, Synthetix has now resumed trading and transfers after the platform yesterday suffered an oracle error that led to several trades with profits of 1000x, resulting in more than $1 billion in profits in under an hour. According to Warwick, Synthetix's private price oracle has misreported the price of KRW since the oracle took an average of the only two remaining prices due to an "Earlier unrelated outage which had not been caught by our exception reporting." Subsequently, one of multiple trading bots on Synthetix exchange managed to detect the price error and exploit it to gain massive profits based on the incorrectly reported price of KRW, Warwick wrote.
The exchange subsequently stopped oracle service, halting all transfers and trading within the system at that time, the post reads. Synthetix further reached out with the owner of the bot, who agreed to reverse the trades in exchange for a bug bounty of unspecified amount, Warwick reported. Exchange implements a private oracle that pulls feeds from multiple credible financial market resources, as the company said on its website, adding that they are currently seeking options for decentralized oracles.
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