AkuDreams is an NFT collection hosted on the Ethereum blockchain. All its funds, 11,539 ETH, associated with the creation of the coins in the collection remain blocked. In fact, after a developer’s malfunction, it’s now an inaccessible smart contract. These are actually two code errors that led to the total loss of these Ether.
An error from the AkuDream project
The very successful launch of AkuDreams quickly became a failure for the project team. The long-awaited collection of avatars has been auctioned off. However, due to some issues in the smart contract code, this collection suffered major issues.
The auctions for the NFT collection were based on the model called ” Dutch auction “. In this mode, the lowest bid on the auction will set the price for everyone. This means that all bids higher than the lowest bid must refund the lowest bid. Many users and investors have praised the project’s efforts for a true auction method.
Due to an error in the smart contract, $ 34 million, equivalent to 11,539 ETH, is permanently lost to the project. The smart contract developer made two mistakes. The first is the fact of interrupting refunds. He should have just slowed down the sending of requests from other contracts on his AkuDreams smart contract. Despite the omission of this act, a malicious person was able to send a forged request for reimbursement via a malicious contract. That was what broke the contract’s payback loop. The latter makes it possible to prevent the withdrawal of funds as long as the repayments are not made. This had the effect of breaking down the system. Due to this, the refund method could not work properly.
The second mistake that has been made is to store data inside an index that is linked to the user. It is thanks to this auction data that repayments can be made. The implementation of refunds is increased via a single variable, which causes a delta when a user performs multiple creation operations. Refunds did not work in duplicate, as a user could only perform one action for the index.
Creating a smart contract
Implementing a smart contract requires consideration of several factors. Above all, all smart contracts must follow a strict test protocol. These are also meant to check for errors on an NFT bet contract, for example. To be able to implement a smart contract like AkuDreams, you need to:
- Avoid calculation errors
- Choose the right contract
- Perform multiple tests and make sure they are crucial
- Avoid locking in millions of dollars in a single contract
- Keep cash available
In fact, AkuDreams experienced a major breach that blocked 11,539 ETH or $ 34 million. The calculation of the number of bids was incorrect. This is mainly what caused the validation to fail permanently and thus prevented the funds from being withdrawn.
The loss of AkuDreams’ NFT collection comes from flaws in the smart contract code. A total of 11,539 ETH have been lost and trapped in the smart contract. However, the project promised to repay all investors by highlighting their gross errors.
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Interested in investing and financial markets after a business school in Chambéry, the passion for cryptocurrency was obvious. Blockchain is definitely the universal tool of tomorrow.