1. Midas Capital paused borrowing activities due to a suspicious transaction involving a recently added collateral token.
2. The token, WMATIC_STMATIC, was listed with a supply cap of 250,000 to prevent grand borrows against the Liquidity pool.
3. Midas Capital had previously experienced a similar event when they launched BNB with Ellipsis, leading them to back LP tokens as collaterals.
Midas Capital, a venture capital organization that funds and supports blockchain projects to their success, recently announced that they had paused borrowing activities on their Jarvis Polygon pool due to an investigation of a suspicious transaction. Blockchain security watch firm Certik Alert revealed that the exploiter had gained 663,101 MATIC, worth $660,000 at the time of writing.
The token involved in this suspicious transaction was WMATIC_STMATIC, which was listed last week on the official Midas Capital website with a supply cap of 250,000. The company had discussed the idea of adding this token with their team, Jarvis network, in order to provide new options for pool utilizers. In addition, the supply cap was implemented in order to prevent grand borrows against the Liquidity pool tokens.
Midas Capital stated that they had made a wrong judgment in assuming that the pool was solely comprised of ERC20’s wrapped assets. They also believed that the previous re-entry attack wouldn’t affect them while using ‚raw call‘ the chain’s native token. Unfortunately, this was not the case and the company had experienced a similar event prior to the launch of BNB with Ellipsis when they had heavily backed LP tokens as collaterals.
Overall, this issue is currently being investigated and Midas Capital has taken the necessary steps to ensure that a similar situation does not occur in the future. They are confident that their oracle emanates from the Ethereum blockchain, which is a much more secure platform than they had previously thought. As of now, the company is working to resolve the issue and will continue to monitor the situation.