URANIUM FINANCE

DESCRIPTION OF EVENTS

Uranium Finance is "The daily dividends AMM". They "believe the answer is to simply return the majority of the profits to [their] users : make them shareholders instead of only liquidity providers."

"In the current DeFi world, the same problem is encountered by many AMMs : the token value collapses, tends to 0, and the use of DEX decreases before it stops completely. Many strategies have been attempted to avoid this pitfall (layered farming, exotic burning mechanisms..), but none have succeeded, until now." "Uranium is the first AMM platform to implement a concept of this type that has won us all over: Imagine being a shareholder of your favourite AMM, stake and receive dividends ? Uranium made it happen with its RADS token and we explain how it works."

"The attacker drained RADS/sRADS rewards tokens from the vulnerable contract and sold them for $1.3M worth of BUSD and BNB." "On the 8th April around 00:30 UTC, an exploiter was able to constantly grab the contents of the RADS pool and all of the RADS/sRADS rewards and sell them for $1.3Mil worth of BUSD and BNB. This drastically dumped the price of RADS and the exploiter then transferred the BUSD and BNB to his wallet."

"As soon as we received the information regarding the exploit, we immediat[e]ly alerted our community on Telegram and tried to respond to everybody’s concerns. At the same time, our team was hard at work trying to find the best solutions."

"We could identify the wallet of the exploiter and saw that the initial funds transferred on it were directly coming from a Binance hot wallet, so that he could potentially be identified. We then launched a call on Twitter to Binance in order to help us. At the same time, we made a public request to the attacker to give him a way out of all of this, by sending us back the majority of what he stole, but keeping a part of what we called a “bug bounty”. Of course, we didn’t really like the idea of negotiating like this with the guy who stole the funds, but we judged that it was the best we could do in the interest of the Uranium platform, it’s investors, and the team."

"After some negotiation, he informed us he was ready to send us back $1,000,000 if we agreed to not take any further action against him and let him be. A few minutes later we got the funds back as ETH."

"Absolutely all of it will be sent to the money pots : a part of it will be distributed as dividends for the launch day of the v2, the rest will go into the bonus money pot, and will progressively be sent to the pending money pot. We still have to decide about the ideal repartition of the amounts yet between the two, and we’ll keep you informed about that."

"[T]he snapshot that will be used to get all the RADS and sRADS data will be at 1:00am UTC. We chose to use one a bit after the beginning of the attack, to be sure to reward users more rather than less." "You will be able to swap all of your RADS, no matter when they were bought. All of them will have a 1:1 ratio with the v2 RADS. Among the RADS you will swap, those that you were holding before the snapshot will be swapped with a 10% bonus (1:1.1 ratio)." "Pending rewards are lost. Some of you have lost several hours of farming and we apologize for this. We thought about everything we can, but we just have any way to get the needed information."

"Of course, we take full responsibility of this incident and apologize to all of you who joined the Uranium project. We have been privately audited before the launch and tried our best to avoid this kind of issue, but it was clearly not enough this time. This is definitely a hard-learned lesson."

"Now that the damage is done, and that the compensation plan is set, we know that the only way to redeem ourselves in the eye of our investors if by providing a v2 strong enough to get back to where it was." "The [Uranium V2] launch is planned for next week. We have learnt from our mistakes so first, we will make Uranium publicly audited. Our strategy is to release V2 as soon as possible but we’re aware that people can’t just give trust without some concrete material." "We still strongly believe that our model can be a new paradigm in the DeFI world, and that all of those that keep trusting us even in those dark times will definitely be rewarded!"

Uranium Finance is an automated market maker which provides users with the opportunity to also act like shareholders.

The smart contract which they launched had a vulnerability, and was exploited by a hacker to steal the rewards which would have been distributed to users.

The hacker liquidated the funds, but was able to be identified through blockchain analysis. They agreed to return the largest portion of the funds in exchange for not being pursued legally.

blocksec-incidents/2021.md at main · openblocksec/blocksec-incidents · GitHub (Aug 11)
Uranium Post Mortem V2 Compensations (May 15)
@ret2jazzy Twitter (Aug 11)
CertiK Blockchain Security Leaderboard (Jun 1)
The Daily Dividends Amm (Aug 21)
Address 0x36ad9ee78bfb730955993d2aa77ecccf95e3313e | BscScan (Sep 18)
Address 0x0854Ec1Af3bA4B8517DAf0D548C58b9e20096076 | Etherscan (Sep 18)

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