Opyn pulls liquidity from Uniswap pool as signs point to possible ETH thefts

Ethereum network data suggests that an outside actor or actors executed an exploit of the options issuance platform Opyn, resulting in the loss of an as-yet-to-be-determined amount of ether (ETH).

Word of the exploit began circulating on social media earlier on Tuesday, with observers surmising that those exploiting the Opyn contracts were able to receive both ETH and USDC, a stablecoin.

The ETH put options in question were intended to pay out in the stablecoin USDC upon the time of exercise. However, transaction data indicates that the exploiter received both the USDC as well as their initial ETH.

It’s unclear at this time how much ETH may have been lost. Current estimates range from several hundred ETH to as high as more than 1,000 ETH.

In a tweet posted at 12:56 p.m. ET, the Opyn team confirmed an earlier observation that it had pulled liquidity from Uniswap and was investigating the situation.

“Hey all, it seems like there has been an issue with some oTokens contracts. We are working hard on understanding this issue so we can let help users as best we can. We have removed liquidity from Uniswap in the mean time. Would be best to not open new vaults at the moment,” they wrote.

A request for comment sent to Opyn was not returned by press time.

This story is developing and will be updated as more information becomes available.

© 2020 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.


Opyn pulls liquidity from Uniswap pool as signs point to possible ETH thefts written by Michael McSweeney @ https://www.theblockcrypto.com/linked/73935/opyn-uniswap-liquidity-exploit-eth?utm_source=rss&utm_medium=rss August 4, 2020 Michael McSweeney

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