Tether Saves the Day by Reversing a 1 Million ERC20-based USDT Transaction Sent to DEX Swerve
Some might say, Tether has saved the day.
Surely for the degen whose million dollars was involved here. But not for the crypto industry, which promotes self-sovereignty.
As Dovey Wan said, “It’s defeating the purpose of “code is law” and “unconditional execution of smart contracts.”’
And of course, it’s DeFi (Decentralized Finance), not CeFi (Centralized Finance).
What happened was someone accidentally sent a million dollars in ERC20-based USDT to the Swerve token contract directly.
“I have sent 1000000 usdt to swrv address, who can help me get back the usdt,” wrote the user @free on DEX Swerve’s Discord channel.
Swerve Finance is the copycat of the popular DEX Curve, which has more than $1 billion of total value locked (TVL) in it. Swerve, meanwhile has only about $385 million locked while having less than 10% of Curve’s volume.
Its token SWRV is trading at $3.40 with a market cap of $5.4 million compared to CRV’s $74 million market cap at $1.88.
Tether then came to the rescue of the degen, offering to recover the amount.
Paolo Ardoino, CTO at Tether and it's sister company Bitfinex, asked the person to open a ticket to the Tether support service. Because of the amount involved, Ardoino said the company would prioritize it if the person directly involved in the issue provides the ticket ID.
“If it's USDt ERC20 stuck in an address we should be able to recover it, but in order to be sure, please contact our customer support and we'll try our best,” said Ardoino.
USDT is the most popular stablecoin in the market, but much like Coinbase and Circle’s joint effort USDC, it can blacklist the transactions and recover your money.
Back in 2016, Ethereum also reversed the $50 million DAO hack, but the crypto king Bitcoin has never done so. Back in 2019, Binance CEO suggested such a move, a “rollback,” after the exchange suffered a hack, but it didn't happen because of the strong opposition from the crypto community.
“Most CEX or wallets probably should not let users send to these addresses. But new ones come up all the time…” commented Changepeng “CZ” Zhao this time.