Net gain 420,182 🌀 ycurve [Curve + iearn] post-mortem

Wrapping tokens can be tricky. If they are algorithmically-pegged, going in <-> out requires liquidity. Liquidity can sometimes be there, and sometimes not. It’s not the same as cashing your USDC 1:1 USD because all reserves are always present there. Therefore, it can sometimes mean a 1% slippage depending on the size. And when the size you are trying to move is huge, you can end up with huge slippage as well.

That’s what happened recently with trying to swap ytokens, resulting in a few 100K as net gain/loss for users.

How is it different from trying to grab an Uber in peak hour? You pay x2 the rate because the liquidity of cars is low at that moment. But the key there is that you have perfect information about it. And that was probably the issue here as the uninformed user suffered due to now knowing.

It was an unreleased pool 😴 Some did not wait, took risks, and this was the result. This is a normal thing really.

0x818 after attempts at discussion blocked us and has since deleted their social media, their net gain was 139,957.

“The events above are based on user interaction and were not a flaw of either the Curve or iearn systems. Both functioned exactly as designed.”

🤔 https://medium.com/@andre_54855/post-mortem-28-02-2020-6d675a85a33b