SIR TRADING

DESCRIPTION OF EVENTS

"SIR brings a fresh approach to leveraged investing in DeFi, offering compounding returns without the usual drawbacks. Unlike traditional approaches to leverage, SIR does away with maintenance fees and removes volatility decay.

Users pay a fixed amount when they open or close a position, in contrast with many platforms that charge ongoing fees, eating into long-term returns."

SIR.TRADING introduces a novel approach to leveraged investing in decentralized finance (DeFi) through its protocol, Synthetics Implemented Right (SIR). This platform eliminates the common drawbacks associated with leverage, such as ongoing maintenance fees and volatility decay. Instead, users pay a one-time fee when opening or closing positions, allowing them to retain more profits in the long run. The system achieves consistent leverage by using internal liquidity pools and virtual rebalancing, removing the need for costly external transactions.

At the heart of the platform is the SIR token, a fee-generating asset with immutable issuance embedded into the protocol. Stakers are rewarded from the fees collected by the system, while liquidity providers receive ongoing distributions of SIR tokens—approximately 2.015 billion per year indefinitely. The protocol emphasizes trustlessness and permissionlessness, akin to platforms like Uniswap. Users can create vaults with specified token pairs and leverage ratios, and once the protocol exits beta, its smart contracts will be immutable, ensuring long-term reliability on Ethereum.

The SIR ecosystem divides users into two primary roles: Gentlemen and Apes. Gentlemen act as liquidity providers and are compensated with fees and SIR rewards. Their positions are represented by ERC-1155 tokens called TEA. Apes are the traders who take leveraged positions on chosen token pairs. They pay one-time fees for minting and burning their positions, which are held in the form of ERC-20 APE tokens that are fully transferable and usable across other protocols.

The development team consists of Xatarrer (founder and smart contract developer), Realtarpcity and Abstrucked (front-end developers), and MrLivingstream (UX/UI designer). The project also acknowledges @no_side666 for their contributions as a smart contract analyst. The successful presale phase raised 66,000 units (currency unspecified), with all contributions now viewable for transparency.

"Transient storage was marketed as a more gas-efficient solution, not a potential backdoor for hackers to waltz right in.

But here we are, with an attacker who didn’t simply exploit a coding flaw - they turned a bit of math into a master key, brute-forcing a vanity address that unlocked SIR Trading’s vault like it was theirs for the taking."

"What’s striking is that transient storage, introduced via EIP-1153 in the Dencun hard fork, is still a nascent feature. This may be one of the first real-world attacks exploiting its vulnerabilities, may signal further changes in attack trends."

"This is a clever attack. In the vulnerable contract Vault there is a uniswapV3SwapCallback function that uses transient storage to verify the caller. Specifically, it loads an address of a Uniswap pool from the slot 0x1 and checks that it matches msg.sender. It looks right at the first glance, however at the end of the execution uniswapV3SwapCallback stores the value of the variable amount at the same slot!

Since the value of amount can be controlled externally, one has to find such an amount that will point to a controllable address. So did the hacker: they bruteforced a vanity address 0x00000000001271551295307acc16ba1e7e0d4281 (amount=95759995883742311247042417521410689) and provided precise arguments to mint exactly this number of tokens. After that they directed the flow of the execution such that this amount is stored at the slot 0x1 to replace Uniswap pool address and called uniswapV3SwapCallback from the bruteforced contract deployed with CREATE2 to drain the Vault."

“Sorry. This is devastating news. I just came back asap from my kid’s training. I am in shock. Sorry to everyone. Investors, believers… I poured 4 years of my life. And now we just lost most of the funds to an attacker. I have no words.”

“If you want to discuss privately… SIR isn’t some VC-backed copy-paste DeFi project, but a completely new type of leverage primitive. It’s four years of late-night coding, $70k from friends and believers, and we grew to $400k TVL organically without any advertising. If you keep 100% of the funds, there is no chance for us to survive. Here is my proposal: keep $100k as a fair share for your critical bug find, and return the remaining… We’ll call it even. No legal games, no drama.”

The SIR protocol lost approximately $355,000 in a hack on March 30, 2025.

The attacker routed the stolen funds through the Ethereum privacy protocol Railgun, making recovery efforts challenging. Despite a heartfelt appeal from founder Xatarrer urging the hacker to return a portion of the funds, the response remains uncertain.

Explore This Case Further On Our Wiki

SIR.Trading was a DeFi platform offering a new take on leveraged investing, removing ongoing fees and volatility decay through a one-time fee model and virtual rebalancing. Users could take leveraged positions or provide liquidity, earning rewards through the SIR token system. On March 30, 2025, the platform was hacked for approximately $355,000 due to a vulnerability in Ethereum’s new transient storage feature. The attacker exploited a flaw in the vault contract’s verification logic, using a brute-forced vanity address to drain funds. Despite a public plea from the founder, the funds remain unrecovered, casting doubt on the project’s future.

Rekt - SIR Trading - Rekt (Apr 15)
@DecurityHQ Twitter (Apr 15)
Sir.trading (Apr 15)
Introducing SIR | SIR (Apr 15)
Drained Vault Address - EtherScan (Apr 15)
Malicious Transaction - BlockSec (Apr 15)
Xatarrer - "Sorry. This is devastating news. I just came back asap from my kid's training. I am in shock. Sorry to everyone. Investors, believers, @TokenBrice and team. We worked on this new primitive for so long. I poured 4 years of my life. And ...ter/X (Apr 15)
SuplabsYi - "What’s striking is that transient storage, introduced via EIP-1153 in the Dencun hard fork, is still a nascent feature. This may be one of the first real-world attacks exploiting its vulnerabilities, may signal further changes in at...ter/X (Apr 15)
https://x.com/SlowMist_Team/status/1906722264059674893 (May 15)

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