Decentralized exchange (DEX) Lifinity had its LFNTY-USDC pool drained by an arbitrage bot on Dec. 8. According to Lifinity’s Discord channel, an unexpected response to a failed trade caused the $699,090 loss.

A Lifinity’s core member known as Durden explained that a bot attempted an arbitrage trade following the route USDC > xLFNTY > LFNTY > USDC, trying to profit from price discrepancies between different trading pairs.

Here’s how the events transpired in the @Lifinity_io Discord when the 700k arb happened

I noticed something wrong with LFNTY’s price and alerted zoro, one of the devs on the platform.

At first glance, it appeared that the protocol had gotten hacked…

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