SudoRare NFT Market Maker Rug Pull

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SudoRare

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.

This is a global/international case not involving a specific country.

About SudoRare

"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.”

This is a global/international case not involving a specific country.

The background of the exchange platform, service, or individuals involved, as it would have been seen or understood at the time of the events.

Include:

Known history of when and how the service was started.
What problems does the company or service claim to solve?
What marketing materials were used by the firm or business?
Audits performed, and excerpts that may have been included.
Business registration documents shown (fake or legitimate).
How were people recruited to participate?
Public warnings and announcements prior to the event.

Don't Include:

Any wording which directly states or implies that the business is/was illegitimate, or that a vulnerability existed.
Anything that wasn't reasonably knowable at the time of the event.

There could be more than one section here. If the same platform is involved with multiple incidents, then it can be linked to a main article page.

The Reality

This sections is included if a case involved deception or information that was unknown at the time. Examples include:

When the service was actually started (if different than the "official story").
Who actually ran a service and their own personal history.
How the service was structured behind the scenes. (For example, there was no "trading bot".)
Details of what audits reported and how vulnerabilities were missed during auditing.

What Happened

The specific events of the loss and how it came about. What actually happened to cause the loss and some of the events leading up to it.

Key Event Timeline - SudoRare NFT Market Maker Rug Pull
Date	Event	Description
August 23rd, 2022 12:01:40 AM	Main Event	Expand this into a brief description of what happened and the impact. If multiple lines are necessary, add them here.

Total Amount Lost

The total amount lost has been estimated at $816,000 USD.

How much was lost and how was it calculated? If there are conflicting reports, which are accurate and where does the discrepancy lie?

Immediate Reactions

How did the various parties involved (firm, platform, management, and/or affected individual(s)) deal with the events? Were services shut down? Were announcements made? Were groups formed?

Ultimate Outcome

What was the end result? Was any investigation done? Were any individuals prosecuted? Was there a lawsuit? Was any tracing done?

Total Amount Recovered

There do not appear to have been any funds recovered in this case.

What funds were recovered? What funds were reimbursed for those affected users?

Ongoing Developments

What parts of this case are still remaining to be concluded?

Prevention Policies

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.