On the morning of December 1st, the DeFi community was surprised to discover two deposit transactions on Blast that experienced significant price slippage, causing users to lose 10% of their funds.
Specifically, the address 0xf71 deposited 500,000 USDT into Blast’s contract. However, this user only received 450,000 DAI after the automatic swap on the Curve pool.
This meant that the transaction incurred a 10% loss (about $50,000) due to price slippage. It’s worth noting that the wallet 0xf71 performed two identical transactions, resulting in a total loss of $100,000.
Immediately after the discovery of this incident, the Blast development team spoke up, explaining that the platform had indeed encountered a bug.
According to Blast’s explanation, the user interface on Blast had incorrectly configured the slippage parameter, leading to a total loss of over $100,000 for users.
The project stated that they had already fixed the bug and would compensate users for the lost funds along with a 10% bonus. Fortunately, after scanning the data for review, only one address was affected by this bug.
Blast is a Layer 2 project built on Optimistic Rollups technology, similar to Arbitrum and Optimism. In addition, Blast is compatible with the Ethereum Virtual Machine (EVM), making it easy for investors and dApps on Ethereum to connect.
Blast’s main goal is to promote staking and yield generation activities on the Ethereum network (ETH). Therefore, the platform became one of the hottest projects in the crypto market in recent days, recording over $90 million in ETH and stablecoins bridged to Blast within just a few hours of its launch.
However, due to its controversial operational approach, Blast has received criticism, including from Paradigm (the organization behind product development support).
Despite this, Blast’s popularity seems to be unaffected, and it has even exploded further, witnessing over 50,000 active users on the platform, with $571 million in total value locked (TVL) just within one week of its launch.