crypto eli5

balancer pool with deflationary token drained

someone has drained $505k from statera balancer pool using a very complex arbitrage transaction.
- flash loan 104k weth from dydx
- repeatedly swap weth and sta to drain the pool balance
- sta token charges 1% additional fee on each transfer
- sync the internal pool balance with the actual token balance which was close to zero because of token fees
- swap 1 wei of sta to other pool components

balancer not working with tokens that change their balances outside transfers is inherent limitation of the protcol which is highlighted in the docs. although i think it could've used harsher wording so people don't try creating such pools.

https://medium.com/@1inch.exchange/balancer-hack-2020-a8f7131c980e

www.tgoop.com/crypto_eli5/843

2.2K viewsedited  Jun 29, 2020 at 07:23

balancer pool with deflationary token drained

someone has drained $505k from statera balancer pool using a very complex arbitrage transaction.
- flash loan 104k weth from dydx
- repeatedly swap weth and sta to drain the pool balance
- sta token charges 1% additional fee on each transfer
- sync the internal pool balance with the actual token balance which was close to zero because of token fees
- swap 1 wei of sta to other pool components

balancer not working with tokens that change their balances outside transfers is inherent limitation of the protcol which is highlighted in the docs. although i think it could've used harsher wording so people don't try creating such pools.

https://medium.com/@1inch.exchange/balancer-hack-2020-a8f7131c980e

BY crypto eli5