Hey Nimbus Community,
You might have seen that lately there has been a massive transaction volume at Uniswap and the internal Nimbus Swap machine. A as consequence, there’s been a shift in liquidity volume and token value.
Our team has been on it ever since and we would like to reassure you that there’s nothing to worry about.
Such events are a common thing in Decentralized Finance since the very nature of DeFi implies such kind of opportunities and freedom for all market participants. The good news is, this situation offers great opportunities to community members, too.
Here is what has happened:
The current situation is a result of an attack made by well-designed semi-automatic arbitrage smart contracts that have also been targeting tens of other promising crypto and DeFi projects. It took place at 3:15:17 am UTC, March 1. Here’s the main smart contract’s address: 0x3a518964FF40Ee733d30749A213d2e5C9FFb2B8c.
You remember that initially the NBU/ETH pair started off with a relatively low liquidity, right? Well, the goal behind that was to avoid such attacks. But then, the ETH/NBU pair’s liquidity on Uniswap has grown drastically throughout the past few days. With it, the NBU token has reached the next stage of its development and became extremely attractive for all market participants — including the malicious ones. In particular, it offered great conditions for arbitrage, and this very opportunity was leveraged by this smart contract.
Here’s what Nimbus plans to do in order to fix it and prevent similar events in the future:
This is a common thing for the DeFi market and the team is prepared to deal with it. We have already warned the liquidity providers and they are taking actions to stop this smart contract activity. Moreover, from now on, we shall activate our warning system for Liquidity Providers that shall notify them when there are signs of similar arbitrage activities or any sort of attacks. It will help LPs to react timely and withdraw the liquidity in a synchronized fashion to deactivate the malicious party’s activity. It will also make sure their assets are safe.
Please note, however, that when such events take place, the community may face token value fluctuations and liquidity shifts. That is normal and should not last long as the market self-regulates fast, especially with solid liquidity providers support.
The great thing is, the more users use Nimbus Swap machines and the more Liquidity Providers come on board, the less likely are such events to occur. Still, when a DeFi startup grows as fast as Nimbus does, that is a necessary step to go through.
On the other hand, this offers great opportunities for all Nimbus users:
As you know, the market reachers the balance state fast. You can already see a new trend on both exchanges. This shows that many users are aware of the opportunities that such events behold — and they don’t want to miss this chance!
We have already received news that many members of the community have taken advantage of this opportunity and are doing very well after placing their faith in Nimbus and accumulating NBU.
Some also started providing liquidity while it’s low! This means that they can get a bigger chunk of all transaction fees for themselves.
Remember, each market shift provides plenty of opportunities — and it’s up to you how to leverage them😎 In the mean time, everything is under control and coming period of correction holds great promises for users!
Your Nimbus Team