Assets Removed from Osmosis

    Osmosis Bug

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    At a block height of 4707300, the Osmosis v9 update went live which introduced a software error that led to a bug within liquidity pools.

    According to the Osmosis team, the bug involved the incorrect calculation of LP shares when adding and removing liquidity from pools. The purpose of this post is to follow the money involved in removing and adding liquidity in pools while the v9 was live.

    The first stat we shall look at is the removal of assets from the pools. In the bar chart below observe the total amount of assets that were improperly removed from the pools as a result of the bug.

    We can see that $ATOM was the most removed asset as a result of the bug. The total dollar amount of assets removed from the pools since the v9 went live is about $3.79m.

    Due to the nature of the software error, any address that joins and exits the pool during the period will be able to benefit from the exploit. So let's take a list of all the users that joined the pool within the period.

    There were 2,264 unique wallets that joined the liquidity pool within the time Osmosis v9 went live.

    Moving on, let's take a look at the value of assets deposited in the pools within the period. Our search confirms that $2.49m was deposited in Osmosis liquidity pools.

    Combining the deposits and removals, there was a combined total of $6.29m deposited and removed cumulatively from Osmosis pools.

    The core development team has taken responsibility for the software error and has committed to making users whole. Currently, the chain has been halted and Osmosis v10 is expected to go live in the comings after successful tests.