Hardening DSLA against CEX Programmatic Sell-Offs
Not your Private Keys, Not your DSLA Tokens
The purpose of this Suspicion Activity Report (SAR) is to disclose the existence of transactions that do not make sense to our team, as well as introduce an emergency plan to mitigate their impact on the DSLA Token, and the rest of the DSLA family of products.
📅 November 13, 2020
It was brought to our attention that large amounts of DSLA tokens originating from the ProBit liquidity pool have been sold on Uniswap, in highly automated ways.
📅 November 14, 2020
Per our initial investigation, it is indeed unlikely that a human trader would withdraw DSLA tokens from ProBit, then swap DSLA tokens for USDT on Uniswap, in such a short amount of time (2 minutes), and on repeated, systematic occasions.
⚠️ Intermediate conclusion
Burried in otherwise valid transactions, the 0xc9cae208c7a00b000bbb4bd0645dd170623e9526 wallet involved in these swaps is either exerting price manipulation, or turning a profit through aggressive arbitrage.
We have reached to the ProBit team for clarification, as we lack the elements to clearly establish responsibilities at this stage.
Mitigation Plan
There is no reliable model for quantifying the impact of programmatic sell-offs on the price of assets and their market capitalization.
But we can still harden DSLA against suppression, manipulation, and trading abuse, by:
A) 🔥 2B+ DSLA Token Burn
On November 30, 2020, we will proceed with a 2,000,000,000.00 DSLA token burn using our personal, team, company and participating partners wallets. All other DSLA holders will benefit from the increase in scarcity / decreate in total supply of DSLA.
In that same spirit, we will also inaugurate a new section on the DSLA Protocol official website, dedicated to:
These information also aim at increasing the overall auditability of the project, in preparation for our mainnet launch.
B) 🤝 Trusted Trading Platforms
As we are figuring out the ins and outs of the sell-off with the ProBit team, we strongly advise you do not deposit any funds to the exchange, and consider withdrawing your funds as soon as possible. Here is a list of more reliable, decentralized options:
| Type | Status | Exchange | |
|---|---|---|---|
| Initial Pool | Genesis of the DSLA DEX Pools | Created | Uniswap |
| Bridge Pool 1 | Extension of the DSLA DEX Pools | Created | Mooniswap |
| Bridge Pool 2 | Extension of the DSLA DEX Pools | Created | Balancer |
| DEX Aggregator | Combination of all DSLA DEX Pools | Listed | 1nch |
| DEX Listing | DEX alternative to DSLA DEX Pools | Listed | IDEX |
C) 💧 DEX Liquidity
We had already hinted at new iterations to the DSLA Community Faucet in the past. This incident further puts that effort in perspective. We will make it one of our priorities from now on.
What’s next?
Thanks for the unwavering support, champions. 💪
About DSLA Protocol
DSLA is a risk management protocol for developers, to build applications and operate infrastructures that are natively capable of financially protecting users against failures.
It enables anyone to vouch for the reliability of a service, get paid when the service performs as expected, or get compensated when the service does not meet expectations.