Hardening DSLA against CEX Programmatic Sell-Offs

Wilhem Pujar
Written by Wilhem Pujar
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) Recapturing lost value by reducing DSLA’s total supply;
  • B) Parting ways with our centralized cryptocurrency exchanges;
  • C) Adding liquidity and creating new LP incentives across all DEX pools.

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 / decrease in total supply of DSLA.

In that same spirit, we will also inaugurate a new section on the DSLA Protocol official website, dedicated to:

  • The tracking of your DSLA holdings;
  • The updated DSLA token distribution and the detailed purpose of company wallets;
  • The monitoring of DSLA transactions.

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?

  • We will publish a new SAR once ProBit answers our questions
  • We will provide additional details about the 2B DSLA token burn

Thanks for the unwavering support, champions. 💪

Make sure you join the conversation on Telegram.

About DSLA Protocol

DSLA Token, now on Argent wallet

DSLA Protocol is a risk management framework that enables infrastructure operators and developers to reduce their users exposure to service delays, interruptions and financial losses, using self-executing service level agreements, bonus-malus insurance policies, and crowdfunded liquidity pools.

DSLA Protocol’s flagship use case is to offset the financial losses of Proof-of-Stake delegators and DeFi users, while incentivizing the connectivity, performance and availability of staking pool operators and DeFi service providers.

To learn more about DSLA Protocol, please visit stacktical.com, browse our official blog, and follow @stacktical on Twitter.

Wilhem Pujar

Wilhem Pujar

Core Developer at DSLA Protocol