SushiSwap Asks Lido Community For Help To Recover Lost ETH

SushiSwap said on April 14 that it had initiated a solicitation in the Lido community, stating that owing to the RouteProcessor2 contract fault, a portion of ETH was transmitted to the block builder as MEV incentives and subsequently routed to the Lido Execution Rewards Vault (or about 795.9761955 ETH).

? Sushi’s put up a proposal on @LidoFinance’s Forum

? Following the RouteProcessor2 bug, we’re reaching out to the Lido community to ask their help in the return of the exploited funds dispersed to validator stakers:

? https://t.co/ypRw144ftG

— Sushi.com (@SushiSwap) April 12, 2023

SushiSwap updated its protocol to V3 over the weekend, which featured a new router to allow swaps and future aggregation plans.

The RouteProcessor2 contract, on the other hand, included a critical risk level approval flaw, and users who accepted the contract during the first 12 hours it was online were in danger of being abused by the contract.

As a consequence, numerous additional individuals were able to repeat the transaction, draining about 1800 WETH from a single wallet. Several of these transactions were created by separate block builders, and in one example, a significant sum of ETH was transmitted as an MEV reward to the block builder, who subsequently diverted it to the Lido Execution Rewards Vault.

Jared Gray, SushiSwap’s “chief chef,” verified the issue and vulnerability and reiterated Peckshield’s advice that individuals who have dealt with the SushiSwap blockchain withdraw all rights provided to its contracts. Grey first reported on SEC subpoena two weeks ago.

SushiSwap said that it had contacted many Lido donors over the weekend to investigate the possibility of retrieving this fund and was advised to hold a community discussion. Currently, around 78 ETHs have been paid to Lido Treasury, and the remaining monies have been or will be re-mortgaged. SushiSwap expressed optimism for a stop-loss solution after asking for feedback.

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