A Degen Chain user, Tempe.degen, lost 90% of his assets, amounting to 785,000 DEGEN, during a cross-chain transaction to Base. This incident was caused by slippage due to low liquidity in the DEGEN/ETH pool.
The transaction required converting DEGEN to ETH and back, but poor liquidity led to significant losses. This loss has prompted reactions from the crypto community, highlighting ongoing concerns about security in cross-chain transactions.
In response, the platform has taken full responsibility and promised a full refund to affected users. They also announced upcoming changes to improve service quality and prevent such issues in the future.
This incident underscores the importance of robust liquidity and clear user interfaces in fostering confidence and growth in the crypto market. Ensuring user funds’ safety is crucial for long-term adoption and market stability.
