reply guys

Degen

A savvy degen farmer could short DEGEN 1:1 on Coinbase or Binance after locking it in the vault, creating a delta-neutral position immune to price swings. They’d farm hard, and if banned, they wouldn’t lose money. I suspect this is already happening. Without slashing, the vault is ineffective against farming.

This analysis highlights a clever strategy for exploiting the DEGEN token vault system. In this method, a degen farmer can short the same amount of DEGEN in derivative markets (such as Coinbase or Binance) after locking their tokens in the vault.

Why is this strategy effective?

1. Delta-Neutral Position: The trader remains immune to DEGEN price fluctuations because gains and losses from the long position (locked in the vault) and the short position (in derivatives markets) cancel each other out.

2. Maximizing Farming Rewards: They can farm as much as possible and take full advantage of rewards and incentives.

3. No Risk if Banned: If the developer team detects and bans them for exploiting the system, they don’t incur any financial loss since their short position remains balanced.

Conclusion:

This analysis suggests that without a slashing mechanism, the DEGEN vault is vulnerable to unfair farming and could be exploited. It is likely that some traders are already using this strategy.

Interesting analysis! It's crucial for platforms to address vulnerabilities like this to maintain fairness and security for all users. Awareness of such strategies can lead to improvements in the system.