Decentral Bank corrects a mistake that allowed minting $10 trillion for 1 USN
The USN had a bug that, under certain circumstances, provided a refund of $1 trillion for every $1 in the USN. Decentral Bank claims that it has fixed the error, and users' funds have not been affected.
Decentral Bank says it has fixed a smart contract error that caused about 10 trillion USN tokens to be issued for a short time, the developer of the stable coin said on Thursday. The team burned the tokens and plans to reward the affected user with a reward for the error found.
Decentral Bank (DEBA) is a decentralized autonomous organization (DAO) that develops the USN stablecoin on the Near blockchain.
According to the security incident report, the error was discovered when a user under the nickname "pavladiv.near" tried to exchange 5 USN ($5) for 5 Tether (USDT) at 01:35 am Eastern Standard time on July 6. The user tried to make a transaction through the swap mechanism on the network on Decentral Bank.
However, there was a problem because of which swaps did not work if there was no USDT in the wallet (despite the fact that it is not needed for the swap). As a result of this error, the swap failed.
The user tried to execute the process twice, and in both cases it failed. Since the transaction failed, the USN smart contract tried to return them. And that's where the real mistake happened.
The error caused incorrect placement of decimal places when returning the USN to the user pavladiv.near. Instead of returning 4,9995 USN (just under $5), the smart contract error in both cases minted 4,9995 trillion USN for the user, thus creating almost 10 trillion dollars out of thin air.
Decentral Bank, noticing the minting error, suspended the contract and implemented a correction to prevent incorrect placement after the comma when reimbursing an unsuccessful swap. The team also burned the extra USN tokens generated by the error, restoring the circulating USN stock to its correct state.
If this error had not been checked, it could have been used to create an infinite USN. This could lead to a complete depletion of the USDT liquidity pool on Ref Finance. Ref Finance (REF) is a DeFi protocol in the Near network, as well as one of the sponsors and main participants of Decentral Bank.
The USN developer says that he is testing a fix for the failure of swaps by users with wallets that never had USDT. Decentral Bank claims that users should hold a small portion of USDT when performing such swaps while it prepares to deploy the final solution.
Today's announcement also stated that the bug had not affected anyone and that the user who discovered the problem would be rewarded with a bug bounty. The USN smart contract has also not been suspended since 08:27 a.m. Eastern Standard time on July 6, according to a Decentral Bank security report.
Decentral Bank recently suspended the use of NEAR, the native coin of the Near ecosystem, for minting USN. This step was taken after the collapse of TerraUSD (UST), which raised fears that the USN, which was originally designed in a similar way, could suffer the same fate. USDT is now the collateral for USN.
https://coin-signal.com/cryptonews/decentral-bank-corrects-a-mistake-that-allowed-minting-10-trillion-for-1-usn/
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