On October 22, 2021 at 04:55:12 + UTC, a transfer of 2,392,917 DUCK was made from the team's wallet to the address 0xbadbcd423ed08e99305cf806b0025c316c2b087c:

https://etherscan.io/tx/0xc42c5db859360000906692d95998ca0dbb8ea000443018b42dc70968d1ec9b67

This was a planned investment event which had been in the works for a year. As such, there was no suspicion that the individuals involved were scammers.

As soon as the tokens were transferred, the recipient began to sell them on the open market, making roughly 60 trades.

Due to low liquidity in the pools, the sales volume dropped as DUCK reached almost 0, and, as a result, liquidation on the following CDP was triggered:

https://etherscan.io/tx/0xaed4b98a3a4acd49f0c80f7abb319f83a3f5a1d25710a58fe5764bbf5d7caec6

The initial buyout price for the liquidated CDP was in the region of 0. This allowed a user to buy out a CDP position worth about US$ 3 million almost free of charge:

https://etherscan.io/tx/0x205657c84400412febd16bd1b36eb22e7187e5b39404a496f27aab359076bd78

The liquidated CDP belonged to the treasury team (unlocked tokens to date).


Conclusions

(1) The system was functioning correctly. No errors were found during a thorough investigation.

(2) As yet, we have been unable to establish a connection between the scammer (0xbadbcd423ed08e99305cf806b0025c316c2b087c) and the user (0x2FBb88EC97C4fFC513c837C566d801B368AA671E) who bought out the liquidated CDP. We will continue to investigate this.

We will also continue to work on Unit Protocol. We hope that this loss will have minimal impact on our long-term plans.