A crypto swap dispute involving the Dogeshit ($DOGSHIT) memecoin and the $USDT stablecoin on OKX has recently sparked a debate. OKX has responded to the incident with comprehensive detail. Star Xu, the CEO of the crypto exchange, asserted that the transaction has not experienced any MEV attack, as the rumors on social media are claiming. Hence, the development assures the users about the secure execution of the transaction.
OKX Investigation Clarifies $DOGSHIT-$USDT Swap and Higher-Than-Quoted Settlement
The OKX CEO shared the team’s reply about the controversy regarding the crypto transfer involving $DOGSHIT and $USDT. In this respect, the team’s investigation points out that the exchange path of the user for the transfer flowed from $DOGSHIT to $USDT. In this respect, the quoted amount of the transaction accounted for 3500+ $USDT. Additionally, 1838.43 $USDT was the quote presented on the page. It had a slippage of up to 0.015 while the conclusive on-chain statement was nearly 1915.03 $USDT.
In line with the on-chain execution data, this transfer did not undergo a sandwich (MEV) attack. Contrarily, the investigation reveals that the consumer actually obtained almost 70 $USDT more in comparison with the quoted amount. Keeping this in view, the OKX team also elaborated on the exchange of 3500U for almost 1900U.
Specifically, the consumer manually restrained liquidity sources. For this purpose, in their quote request, the consumer excluded up to 45 protocols while retaining Uniswap V4. This resulted in extremely limited available pathways with a quote that considerably diverged from the efficient market levels. Additionally, the system triggered high price influence, and the page presented a quote of up to 1838.43 $USDT while having already prompted considerable $USD value difference earlier than and after exchange.
OKX Team Nullifies Accusation of MEV Attack, Saying Consumer Implemented Liquidity Restrictions
According to the OKX team’s message shared by Star Xu, the consumer still opted for the execution of the transfer after getting a risk prompt. The conclusive on-chain settlement comprised 1915.03 $USDT, notably better when compared with the page quote result. So while concluding, the report said that the issue did not result from an MEV attack or system anomaly, rather the consumer actively restrained liquidity sources, paving the way for a lower quote.
