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.
While no one believed it, the Osmosis team verified that the issue let malicious users withdraw $5 million from liquidity pools.
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.
During press time, the DEX tweeted the bug has been detected, a patch has been written, and chain updates will be tested soon.
