Happy upcoming New Year, folks! Adding some spice to the sleepy vibes around here with a link to a fascinating discussion in Osmosis.
TLDR: A user tried to deposit 626K in dydx v4 but lost 248K because the squid router suggested a route through Osmosis with massive slippage. The ProtoRev module of osmosis snagged arbitrage profits from the unbalanced pool. There’s been a heated debate in the osmosis community whether they should reimburse this user or not.
I’d like us to discuss what dydx could do to prevent new users from facing such issues. Sure, it’s clear there’s a user error here, but for many folks who are Ethereum maxis, using Cosmos is like switching from an old school American muscle car with buttons to a Chinese electric car where you have to turn on indicators by swiping. Overall, there are some significant UX issues that I believe are hindering protocol growth.
Maybe we should consider using funds from the treasury for balancing pools which see most deposits. Let’s brainstorm this right here.