QUADRIGA INITIATIVE
CRYPTO WATCHDOG & FRAUD RECOVERY PLATFORM
A COMMUNITY-BASED, NOT-FOR-PROFIT
$816 000 USD
AUGUST 2022
GLOBAL
SUDORARE
DESCRIPTION OF EVENTS
"Sudorare was a fork of decentralized NFT marketplace SudoSwap, known for its liquidity pools for NFTs and cheaper gas fees, and LooksRare (LOOKS), another NFT marketplace that rewards users for their participation on the platform. Both projects have gained popularity among crypto circles in the past year." "SudoRare was an automated market maker platform and NFT marketplace, advertising staking opportunities for assets like Wrapped Ethereum (wETH), LOOKS, and XMON. LOOKS is the native token behind LooksRare, itself a fork of the leading NFT marketplace OpenSea."
"The SudoRare AMM is a UX/UI improved, gas-efficient AMM protocol for facilitating ERC721s to ERC20 swaps with better tokenomics on top of it." "SudoRare[ was] an NFT platform that forked from SudoSwap and LooksRare." "[W]e’re merging the Sudoswap features with the LooksRare staking mechanism. We didn’t create something 100% new, we’re just trying to make something better on top of existing protocols." "We hear out what the community told us during the early days. We remastered the Genesis pools." "And potentially airdropping/rewarding early users!"
"Tokenomics: Total supply 100M [SudoRare tokens], 89M [SudoRare tokens] distributed through farming pools, 8M [SudoRare tokens] for liquidity and airdrop[, and] 3M [SudoRare tokens] vested for the team over 2 years (unlocks every month)." "An $SR airdrop will take place at the end of the genesis phase for people who took part in the “am I early?” phase AND staked tokens in at least one genesis pools. We will verify this through your “Early ID” which is the address you used to connect wallet and tweet."
"You will be able to stake your $SR tokens to earn $ETH from the platform trading fees (0.5% on each swap). The product will be live as soon as the LP staking ends." "After the first genesis pools farming phase (3 days), another farming pool will open: SR/ETH. This LP will be incentivized with better rewards in terms of $SR and will also last 3 days."
"To bootstrap our Treasury a 1% deposit fee will be settled on the single sided pools ($XMON $LOOKS and $ETH). However, this fee will not apply for those staking in the SR/ETH pool. The team also plans to fund the SR/ETH pool WITHOUT farming $SR with our OWN personal funds."
"For people who took part in the “am I early?” phase AND staked tokens in at least one genesis pools. We will verify this through your @SudoRare “Early ID” which is the address you used to connect wallet and tweet." "If you've followed my thread (see post below) on the 'Am I early' phase, you simply have to wait for the launch and stake tokens in at least one of the pools in order to be eligible for the airdrop."
"Keep in mind that SudoRare is an EXPERIMENTAL project." "BE AWARE: TEAM IS ANON, PROCEED WITH CAUTION. NO FINANCIAL ADVICE."
"Many in the Crypto Twitter community were skeptical, with 2shabby tweeting on Monday that https://twitter.com/thewgmimovement could be a scam." "The Sudo[R]are team is fully anon[ymous] and will never dox. I don't know who they are and whether their intentions are good or not." “Don’t participate unless you want to take the risk of losing your money. This team is [anonymous], won’t [disclose their identities], and the possibility of this being a scam is high.”
Another Twitter user 0xStanec had a high degree of suspicion, saying, “This Is like a 1,001% scam project that noobs will fall for it.” Twitter user surfcoderepeat reported "[SudoRare] is live but [people are] staking into an upgradeable contract that points to a fork of master chef. [I c]an't see any reason to need an upgradeable version of Masterchef as it's really battle tested already[. S]tay safe as [this] could be a scam."
"[T]his is already scam almost $1M. [S]o sad for [those] who got involved."
SudoRare "ran off with Ξ519 (~$815,000) of user funds and deleted all of its social media accounts on Aug. 23."
"Six hours after going live, almost 1 million LOOKS tokens were swapped into 154.5 Ethereum and another 230.6 LOOKS tokens into USD Coin (USDC), confirmed on Etherscan." "Sudorare developers illicitly emptied the LOOKS liquidity pool just six hours after it went live, swapping over 1 million LOOKS for 154 ether and 60,000 USDC in one such transaction, and thus pulling off a colloquial “rug pull.” The developers stole over 514 ether in all, valued at just over $815,000 at current rates."
"Funds were sent to three different addresses to drain both the funds, with any trace of the project removed, according to PeckShieldAlert on Twitter." "SudoRare already deleted its social accounts/groups, sudorare[.]xyz is down."
In light of the latest Sudorare event, SeaCows NFT, another decentralized NFT AMM platform, tweeted: “This sucks. Do your own research and hold teams to high security and transparency standards.”
SudoRare claimed to be a new and more efficient automated market maker, combining together code from popular platforms LooksRare and SudoSwap. They ran a large airdrop which was a reward for anyone staking in their pool, which was a modified (upgradeable) version of popular market making protocol Master Chef. The community started to become suspicious later in the process, but that didn't stop almost a million dollars worth of funds from being deposited into the staking pool and ultimately stolen from the smart contract.
All social media of the project was removed and it doesn't appear that any recovery has been undertaken at the moment. It appears that someone else has subsequently set up an account on the same SudoRare Twitter handle.
HOW COULD THIS HAVE BEEN PREVENTED?
The SudoRare smart contract underwent no inspections or audits prior to launch, and multiple members of the community who had inspected the contract concluded that it may be a scam. The team installed a backdoor in the Master Chef smart contract which allowed them to steal all funds. It would be recommended that all projects undergo multiple smart contract audits to confirm that there are no backdoors.
NFT Project SudoRare Disappears With Roughly 520 Ethereum in User Funds - Decrypt (Jan 9)
@2shabby Twitter (Jan 9)
@amb_upe Twitter (Jan 9)
@2shabby Twitter (Jan 9)
SudoRare: Launch & Updates. We hear out what the community told us… | by SudoRare | Aug, 2022 | Medium (Jan 9)
SudoRare (Jan 9)
@2shabby Twitter (Jan 10)
@2shabby Twitter (Jan 10)
@2shabby Twitter (Jan 10)
@azerotravel Twitter (Jan 10)
@TrycVerrse Twitter (Jan 10)
@sudorare Twitter (Jan 10)
@sudorare Twitter (Jan 10)
@sudorare Twitter (Jan 10)
@SeaCowsNFT Twitter (Jan 10)
@sungjae_han Twitter (Jan 10)
Ethereum Transaction Hash (Txhash) Details | Etherscan (Jan 10)
Address 0x814dbec5c831c6874d8e69f8de749cd724428cf4 | Etherscan (Jan 10)
@PeckShieldAlert Twitter (Jan 10)
@0xStanec Twitter (Jan 10)
LooksRare Fork Sudorare Rugs for $800K Despite Crypto Twitter Warnings (Jan 10)
@surfcoderepeat Twitter (Jan 10)
@0x_Hammer Twitter (Jan 10)
What Is a Rug Pull? How to Protect Yourself From Getting ‘Rugged’ (Jan 10)
Worldwide crypto & NFT rug pulls and scams tracker - Comparitech (Dec 15)
