Avolend Finance Rug Pull
Notice: This page is a freshly imported case study from the original repository. The original content was in a different format, and may not have relevant information for all sections. Please help restructure the content by moving information from the 'About' section to other sections, and add any missing information or sources you can find. If you are new here, please read General Tutorial on Wikis or Anatomy of a Case Study for help getting started.
Notice: This page contains sources which are not attributed to any text. The unattributed sources follow the initial description. Please assist by visiting each source, reviewing the content, and placing that reference next to any text it can be used to support. Feel free to add any information that you come across which isn't present already. Sources which don't contain any relevant information can be removed. Broken links can be replaced with versions from the Internet Archive. See General Tutorial on Wikis, Anatomy of a Case Study, and/or Citing Your Sources Guide for additional information. Thanks for your help!
Avolend Finance launched on the hot new Blast Protocol and quickly grew to one of the largest projects on the network. The project was officially linked on the Black Protocol homepage, gained listing on AscendEx and CoinGecko, and promoted a partnership with RogueX. They claimed to have been audited by the blockchain security firm BlockApex, however BlockApex came out to deny any auditing was performed. The project finally rug pulled by using their smart contract to create fake collateral and take out a large loan, which was then bridged out of the Blast ecosystem. Websites, tweets, and all other form of media appear to have been deleted. RogueX came out after the rug pull to make clear that they had not completed any KYC and had only had a Telegram discussion.
This is a global/international case not involving a specific country.[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15]
About Avolend Finance
"Avolend is a decentralized collateralized lending protocol built on Blast Chain. The protocol aims to provide investors with an innovative way to earn reward tokens - AVO, by participating in lending activities. The core functionality of Avolend allows users to leverage their assets as collateral to obtain borrowing funds."
"@Avolend_Finance is a decentralized lending protocol that provides wide range of financial services to individuals and institutions #Avolend aims to provide investors with an innovative way to earn reward tokens."
"In the Blast ecosystem, the project Avolend Finance is suspected to be a rug pull. Currently, its official website and Twitter account cannot be accessed."
"I don't know what to say but I am one of the biggest victims from this rug by Avolend on @Blast_L2. Lost near 100k in there.
Not much to explain; was my fault for diversifying into a risky lending protocol. I knew the risk involved, hence I did not share it publicly or privately, but unfortunately, the money is gone.
Wonder if @zachxbt can help me trace him down somehow. Already forwarded him everything I know."
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.
| Date | Event | Description |
|---|---|---|
| February 23rd, 2024 10:06:00 PM MST | Blast Official Tweet | Avolend Finance is promoted in an official tweet by the Blast Finance team. |
| March 4th, 2024 12:47:00 AM MST | Defi News Promotion | Defi News promotes the Avolend Finance project. |
| March 4th, 2024 3:29:00 AM MST | Blastonaut Top Projects | Blastonaut reports Avolend Finance as the top project in terms of market growth over the last 24 hours. |
| March 6th, 2024 5:17:00 AM MST | BlockApex Rugpull Alert | BlockApex alerts the community that they did not perform an audit on the Avolend Finance smart contract. "The repositories have been created 3 days ago and looks like a classical rugpull." |
| March 16th, 2024 8:59:00 AM MDT | AscendEx Listing Interest | AscendEx reaches out to the Avolend Finance team interested in listing the token on their exchange platform. |
| March 24th, 2024 5:27:00 PM MDT | Live On CoinGecko | Avolend Finance goes live on CoinGecko. |
| April 2nd, 2024 7:46:37 AM MDT | Collateral Factor Adjusted | This is likely part of the attack here. |
| April 2nd, 2024 8:03:13 AM MDT | First Bridge Transaction | The first bridge transaction using Orbiter Finance. |
| April 2nd, 2024 8:19:00 AM MDT | Crypt0Darkh0rse Tweet | It is reported that the deployer listed fake tokens and borrowed all the funds from the protocol, and that they are starting to bridge funds. There is speculation that the private key may be compromised. |
| April 2nd, 2024 8:56:00 AM MDT | Website Offline | The website is confirmed as offline in a follow up tweet by Crypt0Darkh0rse. |
| April 2nd, 2024 10:05:00 AM MDT | Tweet From Victim | A victim reports losing $100k and requests help from ZachXBT in tracing where the funds went. |
| April 2nd, 2024 5:39:00 PM MDT | RogueX Confirms No KYC | RogueX confirms that the team behind Avolend did not complete any KYC, and only chatted on Telegram with them. |
Technical Details
This section includes specific detailed technical analysis of any security breaches which happened. What specific software vulnerabilities contributed to the problem and how were they exploited?
Total Amount Lost
The total amount lost has been estimated at $253,000 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?
Individual Prevention Policies
No specific policies for individual prevention have yet been identified in this case.
For the full list of how to protect your funds as an individual, check our Prevention Policies for Individuals guide.
Platform Prevention Policies
Policies for platforms to take to prevent this situation have not yet been selected in this case.
For the full list of how to protect your funds as a financial service, check our Prevention Policies for Platforms guide.
Regulatory Prevention Policies
No specific regulatory policies have yet been identified in this case.
For the full list of regulatory policies that can prevent loss, check our Prevention Policies for Regulators guide.
References
- ↑ SlowMist Hacked - SlowMist Zone (May 1, 2024)
- ↑ @Avolend_Finance Twitter (May 1, 2024)
- ↑ https://dropstab.com/coins/avolend (May 2, 2024)
- ↑ Avolend (AVO) Coin Profile, Info and Statistics | FXEmpire (May 2, 2024)
- ↑ AVO (AVO) Token Tracker | BLAST (May 2, 2024)
- ↑ @mouisaac Twitter (May 2, 2024)
- ↑ @Crypt0Darkh0rse Twitter (May 2, 2024)
- ↑ Blastscan Transactions Information | BLAST (May 2, 2024)
- ↑ @SpaceOnBlast Twitter (May 2, 2024)
- ↑ @CoingeckoLineup Twitter (May 2, 2024)
- ↑ @Roguex_io Twitter (May 2, 2024)
- ↑ @Definews_Info Twitter (May 2, 2024)
- ↑ @AscendEX_ Twitter (May 2, 2024)
- ↑ @block_apex Twitter (May 2, 2024)
- ↑ @blastronaut_eth Twitter (May 2, 2024)