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LeetSwap Halts Trading After $630K Drained From Liquidity Pairs

LeetSwap Halts Trading After $630K Drained From Liquidity Pairs

LeetSwap Halts Trading After $630K Drained From Liquidity Pairs

Coinbase’s Layer 2 blockchain has another problem on its hands.

Coinbase’s Layer 2 blockchain has another problem on its hands.

Coinbase’s Layer 2 blockchain has another problem on its hands.

By Sam Reynolds
AccessTimeIconAug 1, 2023, 4:26 AM
Circling the drain downwards spiral (Shutterstock)
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LeetSwap says it is working with on-chain security experts to recover 340 ether (ETH) drained from its liquidity provider (LP) pairs.

A tweet from PeckShield shows that the exchange, running on Coinbase’s Layer 2 blockchain Base, has been attacked.

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“As our DEX is forked from Solidly, our factory had a security pause function,” LeetSwap tweeted. “We noticed that some pool liquidity might have been compromised, and we temporarily stopped the trading to investigate.”

If you did not lock your liquidity you are free to remove it from the pools, the decentralized exchange added in a follow-up tweet.

Data from DeFiLlama shows that the DEX peaked at a total value locked (TVL) of $41.2 million on July 31, which has since declined to $7 million as of August 1.

This comes after BALD, a memecoin running on Base, rugpulled its users as the token's deployer removed millions of dollars worth of liquidity.

Edited by Parikshit Mishra.

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