Warning! Airdrop! This DEFI Bancor hack will make you earn some free money
Bancor logo on a background

Warning! Airdrop! This DEFI Bancor hack will make you earn some free money

By beareader | cryptopinion | 8 Dec 2019


The Origin

Some day ago in a telegram group, the admin posted a tweet that looked interesting, it was about the imminent airdrop of a relay token ETHBNT to all BNT holders, the strange named relay ETHBNT that gives to his holders the possibility to earn from fees generated by all ETH based trades on bancor network.

The plot thickens

Talking to admins in telegram I got more info about the airdrop that made me decide towards participating in the airdrop, the juiciest info was that you can "deposit" your BNT in a smart contract and mint USDB with which you can use bancor or other relays to trade for more BNT and get airdropped not only for the initial BNT "deposited" but even for the BNT just got and it is not over, you can take these last BNT you got and provide liquidity in a pool like https://1inch.exchange/#/lending and you will still get airdropped for them because they are in a smart contract but they are yours, more on this matter if you are scared about the volatility and you don't want to risk it you can provide liquidity using stable to stable coins (S2S) pool's such as USDT+USDB.

My doing

I took another road: using https://usdb.peg.network/usdb/actions I used the BNT got from trading the USDB and then I borrowed USDB again and used them to buy again BNT, redid the process 2 times and it worked, unfortunately the Ethereum platform is asking for fees for every move you do, I like better komodo platform where there is no gas to pay so if you move $ARRR you pay ~0.0001 ARRR in fees and if you move $OOT you pay ~0.0001 OOT and that's it. The guys in the Bancor chats were very patient with me explaining the operations to do, thank you, guys ;) 

 

snapshot of TG

 

The Risk

Like in everything there is a risk: if the value of the locked tokens dips lower then the collateralization price (in my case 50%) then all locked BNT tokens are lost unless you add more BNT to the lock.

I hope you can find the patience to read and do your own research about this because this is crypto and there are inherent risks in everything so my advice is to use only a small percentage of your funds for investments.

update: On my suggestion (because I am famous LOL like a rat in the sewers) the dev team added a nice and not at all scary warning saying at what price you will get liquidated, not in person obviously, so your loan will need of action before that, more over they added a button that says "repay all" maybe related to the "hack" thingy to get more BNT from re-borrowing USDB more than one time, anyways being this a new tech please be careful and if in doubt ask the nice guys in the TG chat https://t.me/BancorDevelopers

 


beareader
beareader

Crypto enthusiast, freedom searcher.


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