- The investor did not look at the slippage percentage
- Funds were withdrawn through UniswapV2 dead pool with $2 liquidity
After Circle reported that $3.3 billion was stuck in SVB, the USDC stablecoin lost its peg to the dollar. Because of this, users started exchange your assets for other coins. However, not all investors were lucky enough to withdraw their funds.
An unfortunate situation happened to one of these investors. Twitter user BowTiedPickle reported that one customer paid more than $2 million USDC and received $0.05 USDT.
In a panic, the investor forgot to set the slippage, which allows you to set the exact price of the token in order for the transaction to take place. As a result, the bot with the maximum production value (MEV) made $2.045 million in profit, spending $45 for gas and $39,000 for bribes for MEV.
BowTiedPickle wrote that two parties are to blame for this:
“The error in this is twofold:
A: The user clearly misunderstood or incorrectly set the slide
Q: The router mysteriously routed a $2M trade through a UniswapV2 dead pool with $2 liquidity.”
This situation shows that the human factor can lead to loss of funds. Before a transaction, users need to carefully check the information and methods of transfer.
