Coinbase’s Layer 2 Blockchain Faces Security Issue
LeetSwap, a decentralized exchange (DEX) running on Coinbase’s Layer 2 blockchain, has been attacked and is currently working with on-chain security experts to recover 340 ether (ETH) that was drained from its liquidity provider pairs. The exchange, which is a fork of Solidly, noticed a security pause function in its factory and temporarily halted trading to investigate the compromised pool liquidity. If you did not lock your liquidity, you are advised to remove it from the pools, according to LeetSwap.
Key Points:
1. LeetSwap is collaborating with on-chain security experts to recover 340 ETH drained from its liquidity provider pairs.
2. The DEX noticed compromised pool liquidity and temporarily stopped trading to investigate the issue.
3. LeetSwap advises users to remove their liquidity from the pools if they did not lock it.
4. Data from DeFiLlama shows a decline in the DEX’s total value locked (TVL), from $41.2 million on July 31 to $7 million on August 1.
5. This incident follows the rugpull of BALD, a memecoin on Base, where the token’s deployer removed millions of dollars worth of liquidity.
Hot Take:
Coinbase’s Layer 2 blockchain is facing yet another security issue, with LeetSwap being the latest victim. This incident highlights the importance of robust security measures in the crypto space. It also raises concerns about the overall security and trustworthiness of decentralized exchanges. Users must remain vigilant and take necessary precautions to protect their assets in the evolving crypto landscape.
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