Reporting on Fintech, Bitcoin, Ethereum, Blockchain and Cryptocurrency News in Nigeria


User Loses Over A Million Dollars in Error Transfer

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Unknown transfer has gone bizzare due to error in the Ethereum network address used by the sender.

A recent tweet from Token Oops, a real-time Ethereum transaction tracker, revealed that 28,050.04 Aave was lost in an error transaction involving the token contract address

The user reportedly sent out 28,050.04 Aave to the Aave contract address in error, an equivalent of 3029 ETH which is worth over a million dollars at the time of writing.

Aave is a decentralized finance protocol an innovation of the current DeFi trend which allows the borrowing and lending of crypto assets across parties with zero intermediary.

Read Also: Unique  Batman NFT Art sold for $200,000.

Aave means ‘Ghost’ in Finnish and was initially known as ETHLend. The Aave protocol allows Lenders to earn interest by depositing digital assets into specially created liquidity pools. Borrowers can then use their crypto as collateral to take out a flash loan using this liquidity provided.

Quick Facts: Flash Loans allows you to borrow money that will be instantly repaid without having any collateral. In this case, you can take an automated loan which bounces back to it’s owner upon contract bridge without collateral.

Most individuals reacted to the incident, calling on top innovators to create a system that rejects wrong addresses including contract address that is used by a user unknowingly.

Commenting on the incident, CZ notes that its exchange binance.com already have a feature that stops users from authenticating transactions involving blockchain network wrong addresses and contract addresses.

“#Binance have this already for listed tokens. eg, If you try to withdraw BAT to its contract address, our system will stop you. But there are millions of smart contracts out there, and anyone can create a new one at any time, the address looks just like a normal address.” 

Hopefully, users will come to be at home with avoiding error transactions and imbibe the habit of cross-checking transactions before approving them.

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