Cardano DEX Minswap has come out of maintenance mode after the team fixed a critical vulnerability. The exploit could have resulted in a large amount of liquidity being drained.
Minswap, a multi-pool decentralized exchange on Cardano, has just come out of a maintenance mode that lasted for about 50 hours. The team published a blog post talking about how they had gone into maintenance mode because of a critical vulnerability.
Minswap beefs up security
The funds are now all safe and the vulnerability has been fully patched. Users are unaffected in any way, and their positions are the same as from before the maintenance mode was launched.
On March 22, the team was alerted to a serious vulnerability in their smart contracts that would have allowed someone to drain all liquidity. This prompted them to create safeguards and migrate the liquidity to a new smart contract that was patched.
They also extended the liquidity incentives by two days for those who had stacked in the MIN/ADA pool with the LBE NFT. The team is airdropping LP tokens based on a snapshot and over 40% of these tokens have been migrated.
The report on the vulnerability patch goes into detail on how it could have been exploited, and the resolution the team took to fix the issue. One notable point is the temporary addition of making the creation of new pools permissioned. It goes against the grain of decentralization, but the team expects to go into a more decentralized model with Minswap DEX v2.
Smart contract auditing a must
The Minswap team is fortunate to have caught the vulnerability in time. Had it not, it could have resulted in a massive drain of funds and caused a huge reputational hit. Many projects have suffered exploits in recent weeks.
Smart contract weaknesses remain one of the top means by which bad actors steal funds in the DeFi market. It has become essentially mandatory for these projects to run the smart contracts by a third-party auditing firm, which greatly improves their security.
On top of this, crypto insurance is coming to the fore, and this helps protect investors in the event of a theft. The DeFi market is in dire need of more protective measures, as more attackers look to new entrants in the popular niche for their targets.
Disclaimer
All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
Source: https://beincrypto.com/cardano-based-minswap-dex-exits-maintenance-mode-patching-critical-vulnerability/