The automated market maker (AMM) built on Cosmos, Osmosis, was halted because of an exploit that may have led to about $5 million being drained from liquidity pools.
An emergency bug in the liquidity pools of the Osmosis blockchain, which is used to create liquidity and trade IBC-enabled coins, has been reported.
It all started when Reddit user “Straight-Hat3855” claimed in a now-deleted post that there was a severe vulnerability where anyone could add liquidity to any pool and the value of the liquidity withdrawal was 50% higher than the deposit.Â
While no one believed it, the Osmosis team verified that the issue let malicious users withdraw $5 million from liquidity pools.
![image 2022 06 08T12 40 31 259Z 1](https://www.cryptotimes.io/wp-content/uploads/2024/02/image_2022_06_08T12_40_31_259Z-1.png)
As soon as the validators found the problem, they were able to respond within 12 minutes.
The network validators halted the chain at block #4713064 as a result of this. The chain was halted for emergency maintenance, according to a Discord post by Osmosis community analyst RoboMcGobo.
![Screenshot 2022 06 08 161833](https://www.cryptotimes.io/wp-content/uploads/2024/02/Screenshot-2022-06-08-161833.png)
During press time, the DEX tweeted ‌the bug has been detected, a patch has been written, and chain updates will be tested soon.