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The Osmosis network was halted by core developers and validators at 02:57 UTC following the emergence of an exploit that may have led to about $5 million being drained from liquidity pools.
- The bug was brought to light by a community member on the Osmosis subreddit, although the post was deleted by the forum's moderator.
- The exploit came to light when a user deposited funds to a liquidity pool before instantly withdrawing it. The value of the withdrawal was unintentionally 50% higher than the deposit.
- The team took 12 minutes to halt the chain after the exploit had emerged, according to a Discord post by Osmosis community analyst, RoboMcGobo.
- "I cannot speculate on the cause of the bug, an ETA on the chain restart, or the pools that were impacted because we simply don't know yet," RoboMcGobo stated at 05:47 UTC.
- In an update on Twitter, Osmosis wrote: "Liquidity pools were NOT 'completely drained.' Devs are fixing the bug, scoping the size of losses (likely in the range of ~$5M), and working on recovery. More info to come."
- Osmosis is a blockchain that is built on the Cosmos framework. It operates a decentralized exchange (DEX) that had $11.8 million in daily trade volume before the chain was halted.
- The Osmosis token (OSMO) is 6.96% down over the past 24 hours, according to trades on MEXC.
STORY CONTINUES BELOW
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UPDATE (June 8, 09:15 UTC): Adds time of network halt in first paragraph, information from posts on Discord.