200 US dollars turned into 290,000 US dollars. What did this DeFi user experience?

Overview

• One DeFi trader made 747 ETH from a single transaction last week.

• He discovered a vulnerability in a DeFi smart contract.

• He resigned.

$200 turns into $290,000 with one click of a mouse? A week after all this, DeFi user Amplify confessed everything.

Amplify found a vulnerability in SYFI. Or as Amplify puts it: "Accidentally broke thousands of people by exploiting a vulnerability I didn't even know existed."

The project Amplify is referring to is Soft Yearn Finance (SYFI), which has the sole purpose of tracking the price of YFI. SYFI has a "rebase" mechanism, which means that its protocol resets the price every time the price deviates from YFI, either by destroying its existing tokens or generating new ones.

On September 3, the rebase function of SYFI failed. Amplify said that it bought 2 SYFI for $200 two minutes before the rebase started.

Then he looked at Uniswap and saw that 2 SYFI turned into 15,551, and then the price of these tokens exceeded 740 ETH. At the time of Amplify trading, the price of 740 ETH was about $250,000, and it has been rising since then.

At first, Amplify thought: "It's just a little UI bug, when I send the transaction it will fail due to insufficient balance." Amplify's second thought was: OK. It's okay to give it a try, and if the transaction fails, I will only lose "$20 to $50 in fees."

As a result, the transaction was successful. The transaction allowed Amplify to get 740 ETH, but it was taken from other users. Then, the project collapsed.

Amplify clarified that he had no intention of doing evil: “I saw an opportunity, or you could call it a deal, and I took it.” If Amplify hadn’t taken advantage of the opportunity, someone else would have.

Amplify doesn’t sound all that guilty, saying, “It seemed clear from the beginning that the SYFI community existed only to make money.” In a community filled with traders, it’s reasonable to assume that no one had done due diligence on the team or its credibility.

“People still take it for granted that developers didn’t review their code and made a buggy product. It’s no one else’s fault but theirs.”

Today, Amplify is living a wealthy life. He quit his job and has donated $10,000 to Gitcoin (a platform for independent developers to get rewards for solving bugs).

"I've worked a minimum wage job most of my life. If I use this wealth wisely, I can ensure my family doesn't struggle for basic needs, like a car."

However, most of the money went straight back into the YFI vault - this time it was real YFI.

But his words to prove his innocence still stand: "I had no idea this vulnerability existed in SYFI. I just clicked my mouse because I saw something unbelievable."

Link to this article: https://www.8btc.com/article/645678
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