LeetSwap, the main decentralized change by buying and selling quantity and liquidity on Base, an Ethereum layer-2 answer by Coinbase, paused buying and selling on its platform as a result of potential exploitation of the platform’s liquidity swimming pools.
The decentralized change’s workforce mentioned in a tweet this morning that some liquidity swimming pools on the DEX “might need been compromised” and buying and selling will stay paused as they “examine” the problem.
The workforce mentioned in a follow-up tweet that they’re attempting to “discover a solution to recuperate the locked liquidity.”
The platform lets customers lock their liquidity-provider tokens, basically receipt tokens for contributing liquidity to a DEX, in change for LEET token rewards.
One consumer of LeetSwap wrote of their Discord that their locked liquidity within the Axelar Wrapped USDC (axlUSDC) and Ethereum (ETH) pool had “disappeared” in a single day.
The workforce added that withdrawals of property that weren’t locked within the swimming pools had been open whereas buying and selling stays paused.
LeetSwap had $41.2 million in deposits on Monday, per DeFiLlama information, as meme coin hype took off on Base.
A meme coin is a class of cryptocurrency tokens that has no particular utility however positive aspects reputation and worth primarily as a result of its affiliation with an web meme, joke, or viral content material.
Its liquidity has since plummeted following an enormous rug pull rip-off involving BALD tokens and the buying and selling pause this morning. Presently, the DEX holds deposits price $7.17 million.
A rug pull is a developer rip-off the place an entity that created a decentralized software or token instantly shuts down or disappears, taking investor property with them.
Meme coin frenzy on Base
Coinbase’s layer-2 platform opened the community for builders on July 13, which adopted a flurry of meme coin launches.
Presently, there are 100 meme cash listed on LeetSwap, per DEX Screener information.
On Sunday, LeetSwap recorded $200 million in buying and selling quantity for meme cash, amongst which BALD token accounted for greater than half of the buying and selling curiosity.
The meme token presumably refers to Coinbase CEO Brian Armstrong’s shaved head. BALD’s worth surged greater than 3000% inside a day of its launch on July 30.
Nonetheless, at its peak market capitalization of round $28.1 million, the token’s developer on LeetSwap withdrew $25.6 million price of liquidity, inflicting the token to plummet greater than 92% inside minutes.
Blockchain sleuths suspect the involvement of FTX’s notorious founder Sam Bankam-Fried within the BALD rug pull.
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