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Smart Contract Developer: Stargate arbitrage is not a bug, Layerzero will re-optimize eqRewards distribution efficiency

2023-05-25 13:49:55
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ChainCatcher message, regarding the "Stargate suspected bug," a Twitter user named "0xlittledevil," a smart contract developer, responded that this user's behavior actually conforms to the Stargate protocol, as their actions have helped with the pool's rebalancing and paying protocol fees, all of which are beneficial to the protocol. The erRewards pool is accumulated from the eqFee fees from user transfers and is completely independent of the main protocol; how to allocate eqRewards for incentivizing rebalancing is merely an efficiency issue. All funds are safe. Layerzero will deploy a new Fee library to optimize the allocation efficiency of eqRewards.

Earlier today, Twitter user @BofkUR posted, "Stargate seems to have a vulnerability, as one user is profiting 1000U-2000U each time they cross-chain using this vulnerability. It appears they first add several million dollars in assets to the liquidity pool, then immediately withdraw to unbalance the liquidity pool, and then cancel the cross-chain in the same block. They have traded over 200 times recently." (source link)

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