Blockchain analysis firm Lookonchain has announced that it has identified a significant error occurring on the decentralized exchange (DEX) OpenOcean. During a period when USDR’s liquidity was severely constrained, causing its nominal value to drop by nearly 50%, a user swapped $131,350 worth of assets for $0.
Details of the incident
On October 12, this user exchanged $131,350 in USDR for $0 in USDC. According to Lookonchain’s report, the swap occurred during a sudden drop in USDR liquidity. The user appears to have experienced a substantial loss due to panic selling of USDR.
Due to the decoupling of the stablecoin USDR, this guy accidentally swapped 131,350 $USDR for 0 $USDC while panic selling $USDR.— Lookonchain (@lookonchain) October 12, 2023
And a MEV bot successfully arbitraged $107K.https://t.co/FHOJtaGcSDhttps://t.co/IYtoqar29N pic.twitter.com/USLF1qkVDK
MEV Boat Earned 107,002 Dollars from This Incident
However, this erroneous transaction was later detected by a Maximum Extractable Value (MEV) bot, which noticed the user’s transaction mistake and seized the arbitrage opportunity. It then utilized the low value of USDR to secure a total profit of $107,002.