A crypto trader made $19,687 by selling just 1 token $SPK , which was worth about $0.05, due to an error in the liquidity pool parameters. According to Lookonchain, user teochew.eth created an SPK/USDT pool on Uniswap V3, adding $19,998 USDT as one-sided liquidity. He intended to set the rate at 1 USDT = 19.93 SPK, but accidentally specified the reverse rate — 1 SPK = 19.93 USDT. This mistake allowed trader 0x7ef29 to exchange 1 SPK for nearly all the liquidity in the pool, leaving teochew.eth with a loss of about $20,000.
Such a case highlights the risks of decentralized finance (DeFi), where errors in smart contracts or parameters can lead to immediate losses. Analysts emphasize the necessity of thorough verification of pool settings before adding liquidity. Similar incidents also draw attention to arbitrage opportunities, as traders react quickly to market anomalies.
This event has made headlines in the crypto community, reminding us of the importance of caution in DeFi. Follow the news to avoid such traps!
#cryptotrading #defi #LiquidityPools #CryptoNews #SPK #MiningUpdates
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