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I don't think this is right at all. The attack first created 100,000 wETH ($320 million) on the Solana side, and then bridged 93,750 wETH ($250 million) to ETH
by vilhelm_s 5y ago
I don't think this is right at all. The attack first created 100,000 wETH ($320 million) on the Solana side, and then bridged 93,750 wETH ($250 million) to ETH on the Ethereum side [1]. So some of the added ETH backs the remaining 6250 "extra" wETH tokens on the Solana side, but almost all of it would have gone to replace the stolen 93,750 ETH, and that's a pure loss. Either way I don't think this would cause any inflation, since the wETH still corresponds 1:1 with locked ETH.
[1] https://twitter.com/samczsun/status/1489044939732406275 https://twitter.com/samczsun/status/1489044939732406275
- ww520 5y agoWho is holding the SOL from the created wETH by the hackers at the end?
- vilhelm_s 5y agocreating wETH doesn't create any SOL, they are separate things.
- ww520 5y agoIn a normal setting when a user deposits his SOL to create the wETH, where does the SOL go at the end when the wETH is settled? Where does the SOL go when it's released from the wETH? The wETH pairs X amount of SOL with an ETH. When it's settled, it releases both the SOL and the ETH to the corresponding parties. When the wETH is falsely created, it creates the SOL it wraps.
- somebodythere 5y agowETH wraps ETH, not SOL.
- ww520 5y agoSo where does the SOL go in a normal transaction?
- 22c 5y agoSOL is the gas on Solana smart contracts. In a "normal" transaction on Solana, SOL goes towards paying the TX fee itself. In the case of the Wormhole bridge, there are transactions on both the Ethereum mainnet side (paid for in Ethereum gwei) and the Solana network side (paid for in Solana gwei). The only lossy factor is in the bridging fees themself which are typically a "flat" fee.
- vilhelm_s 5y agoYou don’t deposit any SOL to create wETH, you deposit ETH on the ethereum side. That’s what the name means, “wrapped ETH”