THE HASH: How Market Manipulation Led to a $100M Exploit on Mango; Betterment Launches Crypto Offering

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4.7 • 698 Ratings

🗓️ 12 October 2022

⏱️ 19 minutes

🔗️ Recording | iTunes | RSS

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Summary

This episode is sponsored by ZenGo. The most valuable crypto stories for Wednesday, Oct. 12, 2022. A rogue crypto trader utilized millions of dollars to manipulate the prices of Mango’s MNGO tokens on the namesake decentralized exchange (DEX) to eventually drain over $116 million in liquidity from the platform. The Hash Hosts discuss this plus, the largest independent robo-advisor, Betterment, is letting its clients invest in a handful of crypto portfolios for the first time, but with a caveat: best not to go above 5% exposure. See also: How Market Manipulation Led to a $100M Exploit on Solana DeFi Exchange Mango Robo-Adviser Betterment Launches Cryptocurrency Offering - This episode has been edited by Michele Musso. Our executive producer is Jared Schwartz. Our theme song is “Neon Beach.” - ZenGo crypto wallet is an on-chain crypto wallet with no private key vulnerability, leveraging advanced cryptography called MPC. Get started at ZenGo.com/HASH and use code HASH to get $20 back on your first purchase of $200 or more. Terms and conditions apply. See site for details. See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Transcript

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0:00.0	This episode is sponsored by Zengo.
0:10.4	This is the hash podcast. Stay informed with the latest on Bitcoin, ETH, the Metaverse, Web3, and more, with stories that matter to the crypto world all on the hash for your ears you're listening to the
0:25.1	coin desk podcast network hey folks welcome to the hash says so right there you're watching coin
0:33.0	coin desk tv it's the hash it's me zack seward it's will foxley's jensen assy we have to know this is what's going on it's great it's the hash. It's me, Zach Seward. It's Will Foxley, it's Jensenassie. We have to know.
0:38.3	This is what's going on. It's great. It's a happy Wednesday. There was some crazy stuff in
0:42.9	Defi on a Tuesday night. I hope you guys got to tune in for that because it was a wild one.
0:49.2	Will's going to get us the details and kick us off on our show today. Will, take it.
0:53.8	This brought me back to Defi summer
0:56.4	2020. Another hack, another day, late night, right? $100 million was drained from mango markets,
1:03.0	which is one of the largest marketplaces or exchanges on top of Solana. This exchange is well known
1:09.0	by a lot of traders who flip tokens during the Solana
1:11.7	pump last year, but now they're having some problems after a very illiquid token, their actual
1:17.5	native token, the Mango token, was used to rugpole $100 million out of the protocol in
1:23.8	essentially a very fair way of just using the protocol's own rules against itself.
1:28.7	Essentially, they use two tokens. They use USDC, stable coin, and then the Mango token itself.
1:34.1	They pumped up the price of Mango token, which was trading about two cents to 90 cents.
1:39.1	Then they used that token allocation, a 90 cents of the Mango token, to go and take a loan out from the mango
1:45.4	decks itself. And then when the price of that token went back down to two cents,
1:50.5	they ended up with a huge bag from this loan and the loan got liquidated. And they ended up with
1:55.7	about $100 million. So pretty sophisticated hack. These things can happen because decks is are
2:00.7	built within parameters.
2:02.4	Typical order book on a centralized exchange, you want to be able to do this because there's
	...

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