UNISWAP

DESCRIPTION OF EVENTS

"Uniswap is an Ethereum exchange, built using smart contracts and liquidity pools, as opposed to the order book of a traditional centralized exchange (CEX), such as Binance. With any Ethereum wallet, users can simply connect to the Uniswap application and effortlessly exchange ERC20 tokens without first sending them to the exchange platform account."

"[T]he development of Uniswap was facilitated by Vitalik Buterin’s idea for a decentralized exchange (DEX), which would involve an automated market maker. Actually, the protocol developer himself, Hayden Adams, at first tried to just practice development on Solidity, and later this hobby brought him several grants and $100 000 from the Ethereum Foundation. Now the project went far beyond just entertainment and became one of the most important components of the entire DeFi industry."

"[D]ecentralized exchanges are one of the leading DeFi sectors, whose trading volumes exceeded $1.5 billion and reached the all-time high in June. Uniswap and Curve together processed nearly $800 million, which is more than half of the overall monthly volume."

"Since its ‘V2’ overhaul in May, Uniswap has emerged as a cornerstone of the nascent DeFi ecosystem, with data published by Dune Analytics indicating that Uniswap comprises DeFi’s top pool by total users with 92,000."

"Nimbus has an ambitious plan to open some of the most rewarding DeFi functionalities to everyone. All of it within just one ecosystem and with increased efficiency due to decentralization."

"Our approach takes the best tools from traditional finance and combines them with the best practices of DeFi. The recipe targets the key shortcomings of both traditional finance and DeFi in a comprehensive manner."

"On 21 December, a malicious third party launched a fake NUS token on Uniswap. Considering that it’s impossible to list two tokens with the same symbol there, we had to urgently rearrange our smart contracts and many other important things."

"Luckily, we managed to solve this quickly and already published our new smart contract. Do note, that due to the situation, our «NUS» Token has been renamed into «NBU» Token."

"As Uniswap’s protocol is permissionless and both good and bad actors can list tokens through it, you will often see a warning for users to take the initiative in avoiding scammers."

"Rather than searching for tokens or pairs on Uniswap, you can verify you are selecting genuine ones by going via a trusted source, such as the CoinMarketCap or CoinGecko crypto tracking websites. On CoinMarketCap, for example, you can search for the token, select it, then navigate to the trading pairs towards the bottom of the page. If you then click on the relevant pair next to Uniswap, it will take you to the genuine Uniswap page and help you to avoid fake tokens. It also has an option at the top for MetaMask." "Explorers like Etherscan can also be used to check the vital analytics needed to make a more informed decision."

Uniswap allows anyone to list a token. Therefore, there have been a massive number of scams with tokens named similarly to popular tokens. The Nimbus did not have a token. There was still a reasonable chance someone may have looked for one, and ended up purchasing from a scammer.

HOW COULD THIS HAVE BEEN PREVENTED?

There are no reported cases of centralized platforms listing fake tokens. Such an event would likely be short-lived. Platform operators have an inherent interest in protecting their users against fraud, and the insurance fund is available for platforms to use.

Check Our Framework For Safe Secure Exchange Platforms

Nimbus Platform Launch Nbu Token Smart Contract Release (Dec 21)
World Of Nimbus Dapps And Opportunities (Dec 21)
NBU | 0x795b6E098e2A645dAC32F87Cab679Ac60Bf07ECF (Dec 31)

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