A bug on an Immediate-or-Cancel order led to the drainage of nearly $700,000 from Lifnity’s LFNTY-USDC pool.
Decentralized exchange (DEX) Lifinity had its LFNTY-USDC pool drained by an arbitrage bot on Dec. 8. According to Lifinity’s Discord channel, an unexpected response to a failed trade caused the $699,090 loss.
A Lifinity’s core member known as Durden explained that a bot attempted an arbitrage trade following the route USDC > xLFNTY > LFNTY > USDC, trying to profit from price discrepancies between different trading pairs.
The bot initiated an Immediate-or-Cancel (IOC) market order on Serum v3, a type of order that must be executed immediately at the current market price if filled. Orders that cannot be filled immediately are canceled.
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Author: Ana Paula Pereira
