Blast Users Experience 10% Transaction Slippage
Early on December 1st, the DeFi community discovered two transactions on the Blast platform with significant slippage, causing users to lose 10% of their funds.
Specifically, the address "0xf71...68D2" deposited 500,000 USDT into Blast's contract, but after the automatic swap process in the Curve pool, the user received only 450,000 DAI.
This means the transaction suffered a 10% slippage, resulting in a loss of 50,000 USD for the user. The user conducted two similar transactions, totaling approximately 100,000 USD in losses.
Blast later issued a tweet explaining the incident and acknowledged the platform's error.
Official Statement
Blast admitted that the user interface was misconfigured regarding the slippage parameter, leading to a total loss of 110,000 USD for the affected user. The project stated that the bug has been fixed and measures will be taken to compensate the impacted user.
Who are they getting the bonus from, lol?
— James Christoph (@JamesChristoph_) November 30, 2023
When USDT is deposited into the Blast Bridge, it is converted to DAI in the deposit tx. A misconfigured slippage param on the UI lead to 1 user receiving 100k less DAI than they should have across 2 txs. This issue has been fixed. We will send the affected user the amount lost…
— Blast (@blast) November 30, 2023
The lost funds, along with a 10% bonus, will be directly credited to the user's address. Blast also mentioned that they scanned the data and found only the mentioned address to be affected by this bug.
About Blast
Blast is a project that pools ETH and stablecoins from users and reallocates them into Liquid Staking and Real-World Asset (RWA) Yield platforms to increase returns for users. However, its controversial operational model has drawn criticism, including from Paradigm, a fund supporting the product's development.
At the time of writing, it remains unclear whether the compensation and bonus will be transferred to the user's Layer-1 address or directly issued on Blast's platform.
This article covers the recent incident of significant transaction slippage on Blast, including the platform's response and plans for user compensation.
