Osmosis DEX on Cosmos is used to make $5 million as validators stop the network


The decentralised exchange provided by Osmosis, a blockchain in the Cosmos ecosystem, is the only one currently in use. Because of this, the chain was frozen today as a precautionary step.

The Cosmos ecosystem’s decentralised exchange (DEX), powered by the Osmosis blockchain, was shut down today.

Block #4713064 was the block when the core development team and network validators decided to suspend the chain because of a major flaw in its liquidity pools.

In a now-deleted post, a Reddit user noticed that if money were given to an Osmosis pool and then withdrew, the position would climb by 50%.

Prior to the network being shut down, individuals had already begun to use the vulnerability to syphon money out of Osmosis. There is still some mystery around this flaw, but the Osmosis team verified that it let hostile users steal $5 million in assets from liquidity pools.

Pools of water were not “fully emptied.” The Osmosis team said in an official statement that they were trying to solve the flaw, estimate the damages (estimates vary from $5 million to $10 million), and plan for recovery.

The Osmosis DEX and its native wallet are currently unavailable due to a chain stop. Before the network can be resumed, the team has to provide a patch.

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