Sam Bankman-Fried commented on hacking Mango Markets

The head of the FTX Cryptian FTX, Sam Bankman-Fried said that it was not incorrect work of price oracles, but the shortcomings of the risk assessment system allowed to withdraw more than $ 100 million from the Defi Protocol Mango Markets.

“When it comes to oracles, you just have to make your own damn decision,” he wrote.

The unknown used a deposit of 5 million USDC for manipulations with the price of the MNGO token through the opening of a large margin position in unlimited swaps. Due to low liquidity in the spot market, the price of the asset briefly jumped from $ 0.038 to $ 0.91. This allowed https://gagarin.news/news/is-mining-in-the-us-in-trouble/ the hacker to overestimate the amount of the pledge in MNGO, take it under his provision of loans in several cryptocurrencies and withdraw funds.

“And so, something went wrong. Oracle screwed up? I think, in fact, no. Or, rather, it depends on what speculations were information, ”Bankman Fried believes.

According to him, the tool supplies a “raw price flow”, and then it all depends on the work of the risk assessment mechanism. As an example, he brought the operation of such a system on the FTX platform. It does not take into account the price increase by more than 20% for the five -minute period.

“In particular, while the indexed price [MNGO] at the FTX at the peak increased by approximately 100%, on some exchanges movement (temporary!) was at +900%, ”said the head of FTX.

He also emphasized that the exchange charges the greater percentage of margins to provide, the larger the position. If someone decided to take MNGO for $ 500 million, the platform would require a fully funded security bail of 500% of the amount, Bankman-Fried said.

“The reason, in fact, is that large positions – especially in illiquid tokens – can have a great influence [on the price],” he added.

Returning to the oracle, the head of the FTX noted that this tool gives sure information, but its processing and assessment of the safety of positions is the task of the engine to evaluate the risks. The mechanism should not work in “manual mode”, but it needs to have a set of “conservative rules” to respond to large-scale prices, Bankman-Fried believes.

Recall, in April 2022, CEO Waves Platform Alexander Ivanov accused Alameda Research Bankman-Frida of manipulating the cost of token Waves. The founder of the company called the statements “poorly concocted theory of conspiracy”.

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