Bad 1inch Exchange!

Bad 1inch Exchange!

To complete this trade, 1inch decided the best route to go through was Sushiswap’s pool, which only had $200 of liquidity.

In the Twitter thread, 1inch responded, saying they are going to refund the user’s mistake. They also mention they will add more “big warning” so this situation doesn’t happen again.

After some digging, Twitter users were able to find the apparent trader. In a message, the trader said, “I used @1inchNetwork to buy $DIGG initially at 1.59. But @1inchNetwork routing sent me to ETH, but there was no depth. $DIGG is a BTC pool, and there’s no depth in ETH. So I first changed 30 ETH and then 0.0019 DIGG. When I swapped, it indicated 1.59, but the final transaction was 0.0019.” 

According to the trader, there was no slippage involved. This caused SiegeRhino to respond to 1inch, saying that if the trader’s message is valid, this was not a user error but an error on 1inch’s side.

To make this situation even worse, a bot was able to run off with the loot. This Twitter thread explains what happened to the $85,000.

It is unclear at the moment what was the cause of this situation, but one thing is for sure this shouldn’t be happening on such a big DEX aggregator. Some questions have come up: If this was a user error, should the trader have been refunded even after multiple errors? If this wasn’t a user error, then how come 1inch’s route was so bad? Is this a pattern we are going to see in the future?

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