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LeetSwap Halts Trading After $630K Drained From Liquidity Pairs
Coinbase’s Layer 2 blockchain has another problem on its hands.
LeetSwap says it is working with on-chain security experts to recover 340 ether (ETH) drained from its liquidity provider (LP) pairs.
A tweet from PeckShield shows that the exchange, running on Coinbase’s Layer 2 blockchain Base, has been attacked.
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#PeckShieldAlert Our community contributor has reported that LP pairs on #Base have been exploited for approximately 340 ETH (~$630K). https://t.co/U1nGmuwSGj pic.twitter.com/1dcXHZdbth
— PeckShieldAlert (@PeckShieldAlert) August 1, 2023
“As our DEX is forked from Solidly, our factory had a security pause function,” LeetSwap tweeted. “We noticed that some pool liquidity might have been compromised, and we temporarily stopped the trading to investigate.”
If you did not lock your liquidity you are free to remove it from the pools, the decentralized exchange added in a follow-up tweet.
Data from DeFiLlama shows that the DEX peaked at a total value locked (TVL) of $41.2 million on July 31, which has since declined to $7 million as of August 1.
This comes after BALD, a memecoin running on Base, rugpulled its users as the token's deployer removed millions of dollars worth of liquidity.
Sam Reynolds
Sam Reynolds is a senior reporter based in Asia. Sam was part of the CoinDesk team that won the 2023 Gerald Loeb award in the breaking news category for coverage of FTX's collapse. Prior to CoinDesk, he was a reporter with Blockworks and a semiconductor analyst with IDC.
