GEMSWAP

DESCRIPTION OF EVENTS

"GemSwap is described to be a fork of Uniswap and Sushiswap. GEM is the profit sharing and governance token of GemSwap. There is no pre-mine or dev grant. GEM is described to be mined over a 2 weeks mining period. The total supply is hard capped at 80,064,000. GEM is deflationary - GemSwap profit sharing is done by using portion of exchange fee to buy-back GEMs and burn. No new tokens will be minted."

"We are currently working on a new farming concept which provides future profitable use of $GEM while also encouraging higher trading volume for GemSwap exchange. This in turn, will create an eco-system for $GEM holders to profit over the short-term and long-term."

"We liked the SUSHI experiment, but wanted to make an improvement on it’s tokenomics. The inflationary property of $SUSHI resulted in the constant decline of it’s token price due to sell-pressure."

"$GEM on the other hand is deflationary, and has constant buy-pressure created by the protocol itself. We believe this will help to increase the price of GEM and make way for long term success of the exchange."

"[I]t seems like it had all the classic safety checks most people ask for. The Uniswap LP staking contract was identical to that of Sushi. It had a timelock. The problem came when it was migrated to a malicious Gemswap LP token."

"On September 26, the SushiSwap imitation project named GemSwap was exposed and LP was taken away. The query found that the project posted a tweet at around 15:00 today and revealed that it was attacked by the developer of "whatitdobb". It is understood that the project completed the liquidity migration earlier today, but the developer who initiated the attack had The relevant permission was obtained and the tokens in the liquidity pool were able to be taken away. The specific losses caused by this attack are currently unclear." "Gemswap rugged their LP pools by using a malicious migrator. 1.3$M taken"

"There was a small window where damages could've been limited due to time-lock of the Migrator (which was not rogue per se, the attacker needed migration to complete). The attack was possible due to the GemSwap Pair having the emergencyWithdraw function as well."

"With all the higher profile hacks, smaller incidents are often overlooked. The #GemSwap incident while relatively small, deserves attention from the community as well as there are many lessons to learn."

Unknown developers created a fork of popular UniSwap/SushiSwap. After many people were convinced to add liquidity to the smart contract, malicious backdoors were used to empty the liquidity and steal user funds.

HOW COULD THIS HAVE BEEN PREVENTED?

Were there an above-ground method for financial innovation to occur, projects would not need to start via anonymous teams. Safe multi-signature wallets/contracts held by known entities could be used to prevent abuse.

Check Our Framework For Safe Secure Exchange Platforms

SlowMist Hacked - SlowMist Zone (May 18)
$0.0032 | GemToken (GEM) Token Tracker | Etherscan (Jul 26)
GemSwap.org – Medium (Jul 26)
GemSwap: GEM Token | 0x90f62B96a62801488b151fF3c65eaC5Fae21a962 (Jul 26)
Telegram: Contact @Gemswap20 (Jul 26)
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@DoveyWan Twitter (Jul 26)
Blockchain Hacks: 2020 | $15 billion lost, how can we mitigate hacks in 2021? | CertiK Foundation Blog (Jul 23)
SlowMist Hacked - SlowMist Zone (Nov 8)

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