Report on halted trading: reasons and in-depth technical explanation:.

04 Dec 2022, 20:22

📣 Report on halted trading: reasons and in-depth technical explanation: DEX’s themselves very often do not have the ability to stop tradability, which is why Ankr recommended liquidity providers remove liquidity from the liquidity pools. We are absolutely not following a LUNA approach. aBNBc and aBNBb will be worthless with 100% certainty after the airdrop of the new ankrBNB token. ankrBNB will be the only token redeemable against staked BNB (which have been unaffected by the exploit). We recommended anyone providing liquidity removed it, in order to avoid speculative trading, since DEX’s cannot generally block the ability to trade. Ankr also cannot block speculative trading as we cannot control other defi protocols. ‼️ Why did selling stop but buying continued? Because there was no more BNB in LPs to sell aBNBb and aBNBc. It was drained out by the exploiter, who had an unlimited amount of aBNBc that he sold on DEX’s vs BNB until drying out completely the liquidity pools (=0% BNB/100% aBNBc in the LPs) The only exit then available to the exploiter was to sell aBNBc vs BNB on DEX’s since we blocked unstaking. DEX’s cannot be blocked and even if it was possible, it would have been too late to block it manually by the DEX team due to how DeFi protocols are run. 🛠 Why didn’t we simply change the contract to prevent buying and selling? Because the contract was already compromised and any changes we made could be undone or altered by the malicious actor. To take a more secure approach to prevent any further damage that could cover several leakage points we did a one shot replace with the original contract and took preventive measures so it wouldn't be reverted again.