Decentralized finance (DeFi) protocol, GammaSwap, has detected a potential vulnerability within its platform through the ImmuneFi bug bounty program.
GammaSwap launched the ImmuneFi bug bounty program on September 29, 2023 The program allows security researchers to find bugs and vulnerabilities on GammaSwap and get paid up to $30,000.
While the circumstances that trigger this vulnerability are highly specific, GammaSwap has taken proactive steps to address the issue. Although, no funds are at risk.
DEX on Uniswap
GammaSwap is a decentralized exchange (DEX) built on top of the Uniswap protocol that allows users to provide liquidity and earn fees by shorting volatility. Here are some key points to consider:
GammaSwap, a decentralized exchange (DEX), operates on the Uniswap protocol, enabling users to trade cryptocurrencies without intermediaries.
Freeze of contract
According to the DEX, to ensure the safety of user funds and the integrity of the platform, it has opted to freeze the contract, closing all existing trading positions. Liquidity positions are now in withdrawal-only mode as a precaution.
GammaSwap said it’s committed to promptly resolving the vulnerability and will redeploy the contract once the necessary updates are in place.
“We are aware that the protocol is novel and that’s why we spent 9 months testing on Arbitrum Testnet and began with a “soft launch” without token incentives and permissioned pools only,” it said.
“We will always be transparent with our community and do what is in the best interests of our users. Our conservative approach is intentional and designed to preserve the solvency of the protocol.”
It also revealed that while it is not an ideal situation, “we are glad that the protocol is 100% solvent and that we can come back from this even stronger with a robust primitive that will stand the test of time.”
GammaSwap promised that it would release a post-mortem analysis of the identified vulnerability, providing insights into the issue and the measures taken to address it.
