LeetSwap, a leading decentralized exchange platform known for its impressive trading volume and liquidity on Base, an Ethereum layer-2 solution developed by Coinbase, has temporarily suspended all trading activities. This abrupt halt was due to potential vulnerabilities in the platform’s liquidity pools.
The team behind the decentralized exchange platform made an announcement via a tweet that indicated the potential compromise of certain liquidity pools on their platform. Consequently, they decided to pause trading as an immediate measure while they investigate the issue.
A Quick Response to Potential Threats
LeetSwap’s responsive action is admired within the community. Their swift decision to pause trading in the face of potential threats is a testament to their commitment to maintaining a secure trading environment.
Locking Liquidity and LEET Tokens
LeetSwap allows its users to lock their liquidity-provider tokens, essentially acting as receipt tokens when contributing liquidity to a DEX, in exchange for LEET token rewards.
However, recent events have led to one user reporting their locked liquidity in the Axelar Wrapped USDC (axlUSDC) and Ethereum (ETH) pool “disappearing” overnight.
Open Withdrawals and Paused Trading on LeetSwap
In an attempt to alleviate the users’ concerns, the LeetSwap team confirmed that withdrawals of assets not locked in the pools were still accessible despite the trading halt.
LeetSwap, on the previous Monday, had deposits worth a whopping $41.2 million, according to data from DeFiLlama. This was largely fueled by the meme coin hype on Base.
Meme Coins: The New Trend?
A meme coin is a type of cryptocurrency that possesses no specific utility but gains popularity and value mainly due to its association with an internet meme, joke, or viral content.
LeetSwap’s liquidity significantly decreased following a massive rug pull scam involving BALD tokens and the trading halt. As of now, the DEX holds deposits totaling $7.17 million.