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$27M of Sushi funds could disappear at the drop of a chef's hat

Crypto Business World
published on Wed, 23 Sep 2020
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$27M of Sushi funds could disappear at the drop of a chef's hat

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Research into Sushi's wallets reveals the admin holds the keys to $27 million worth of tokens.

 As much as $27 million worth of the native crypto tokens are in an admin wallet that could be dumped without warning. This has been revealed by an analysis of hot DeFi protocol SushiSwap's smart contracts.


Adam Cochran, a data analyst and partner at Cinneamhain Ventures took a deep dive into the administrative wallet structure of SushiSwap. It is a protocol that has gained a lot of traction, and a billion dollars of liquidity, in the past few days. The analysis of the Uniswap clone emerged from a revelation by Twitter user Sasa (@cicnos1). The 'deployer wallet' has around $27 million worth of Sushi tokens, dumped on the SUSHI/ETH (Ethereum) pool. Adam said that when he first looked at the smart contract, he assumed that the developer fund was going to a wallet that was locked by a governance vote or time lock.Adam’s analysis said that it is just a generic wallet. The anonymous SushiSwap administrator — or 'Chef Nomi' as he is known on Twitter — has the cryptographic keys of the wallet. It means that investors could potentially be dumped on without warning.


The analyst added that taking $27 million from a project that currently had such a high valuation fully diluted may not be seen as totally unacceptable. But, not touching that wallet raises further questions given the Chef realizes the project isn't worth more than $2 billion and was unlikely to expect token prices to increase any further. They have retreated 30% from Tuesday's ATH.


Cochran gave 'Nomi' the benefit of the doubt. He suggested that it could merely be an oversight in the ecosystem. But, Adam said the funds should be immediately moved to a governance vote locked wallet. 

DeFi services have been getting traction recently. Some of the largest banks in South Korea decided to provide FX rate information to DeFi services.


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