$DEGEN

Careful When Using Degen Chain Bridge

Or How I Lost 785,000 DEGEN Bridging from Degen Chain to Base 🤦‍♂️

A thread 🧵⬇️

have noticed this on @proxyswap side, so as a stop gap just added 4 ETH personally to the WETH/DEGEN pool, hope it helps 

we need more ETH on DL3! Proxyswap is incentivizing the pool

@decentxyz

Instant cross-chain swaps + transactions

decent.xyz

/decent
/crosschain

Swap or Provide Liquidity on Degen L3: proxyswap.tips | Incubated by @callusfbi x @proxystudio.eth | Latest updates at /proxyswap

founder /openventures | /proxyswap | tokenbot @clanker

Husband, dad, dev • @dune.eth wizard • Ultimate Ⓜ️oxie Dashboard https://tinyurl.com/moxiedash • Ultimate Degen Tips FAQ https://tinyurl.com/degenfaq

decent bridge uses Proxyswap pools on the backend for their crosschain swaps (instant) not the canonical bridge (7 day). Primary reason that the WETH/DEGEN pool is out of balance is that DEGEN price has gone down so much, and most of the liquidity in that pool comes from a Rivera ALM vault which is out of balance due to DEGEN going down 80% in a month ( @asinha.eth may be able to provide more context here)

there is some arbitrage happening between DL3 and Base. 

Best solution would be for Degen team to join us in incentivizing WETH/DEGEN on DL3, with a wider range

is proxyswap what the 7day bridge was using? was there an arbitrage opportunity here? i.e.

1. load some WETH into proxyswap on DL3
2. wait for DEGEN to be bridged at 6-7x spot ((900-115)/115)
3. take the DEGEN you received for your WETH out of proxyswap*
4. bridge the DEGEN using the real-time relay bridge to base
5. sell the DEGEN and net 6-7x the equivalent WETH

* step 3 is probably (at least one place) where I have this wrong; also unclear why people are using the 7d bridge when the real-time bridge is in place?

Crypto enthusiast, ethics, movies and photography.

Founder of /gentlemanswagers

Yep, totally agree decent should clarify (or just use the canonical bridge if liq is low)

Great move @proxystudio.eth. But a little bit of transparency here (in the terms of it is a swap, not a bridge) would go a long way.

🌭 @proxystudio.eth
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