Billionaire Mark Cuban claims that he received out earlier than the Iron Finance “rug pull” came about
Iron Finance, a decentralized finance challenge shilled by billionaire Mark Cuban, has collapsed.
Its TITAN token went from almost $60 to nearly zero inside 24 hours.
The IRON stablecoin—which is partially backed by USD Coin (USDC) and TITAN, additionally misplaced its peg.
In his June 13 weblog submit entitled “The Brilliance of Yield Farming, Liquidity Offering and Valuing Crypto Tasks,” the Dallas Mavericks proprietor revealed that he was a liquidity supplier for TITAN on decentralized trade QuickSwap:
I’m a small LP for QuickSwap. I present 2 totally different tokens (DAI/TITAN) that allow QuikSwap to supply swaps between these two tokens. As you possibly can see right here, this pair is one in every of many, and you can too see that based mostly on the .25 pct of quantity on this swap that Quickswap pays, my return on my preliminary $75k funding (based mostly on charges solely) as of this writing, is an annualized return of about 206%.
Cuban now says that he received out earlier than the “rug pull” occurred:
I received hit like everybody else. Loopy half is I received out, thought they have been rising their TVL sufficient. Than Bam.
Iron Finance—which had $2.2 billion in whole worth locked—urged all neighborhood members to withdraw liquidity from all swimming pools in its Twitter assertion, describing the incident as a “financial institution run.”
It additionally added that the contract didn’t enable for redemptions because the TITAN worth collapsed to zero.
It’s unclear whether or not there was some form of good contract vulnerability since Iron Finance is but to share a submit mortem. It seems that there was an exploit that made the availability of TITAN balloon to 922 billion tokens, thus rendering all tokens nugatory.
Many additionally suspect that the crew behind the challenge may need pulled off an exit rip-off.