Decentralized finance (DeFi) protocol Alchemix is investigating a bug that seemingly forgave debtors’ loans prematurely, basically giving them free cash.
One DeFi observer on Twitter called it a “reverse rug pull,” referring to the crypto slang for when undertaking founders abscond with person funds.
For an unknown period of time, Alchemix debtors might deposit ETH, get the undertaking’s alETH token in return after which withdraw the ETH used to safe their loans with out having to pay them again.
“I used to be efficiently in a position to borrow alETH, and take my collateral,” person ptp1600 mentioned within the Alchemix Discord server.
The Alchemix workforce mentioned it’s investigating the problem and can publish a autopsy shortly. Within the meantime, “the alETH contract has been paused and can stay so till our resolution is applied,” the undertaking tweeted.
Alchemix co-founder Scoopy Trooples didn’t return a request for remark by press time.
Brady Dale contributed reporting.