SushiSwap Bug Leaves Crypto World Worried

Ritika Sharma
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.
  • The bug has the potential to multiply its users  governance power without having to acquire new tokens.
  • Identified by SushiSwap developer Jong Seok Park, on Monday, the bug, in simple terms, is a governance double-spend.
  • Ideally, once transfer of tokens have taken place, the voting delegation should disappear but that wasn’t the case with SushiSwap. 

A massive bug in SushiSwap has left everyone worried in the crypto world. While the SushiSwap has been in limelight recently, the news of bug which could multiply the users governance power without having to acquire new tokens, is an unwelcome distraction for the DeFi protocol. Identified by it’s developer Jong Seok Park, on Monday, the bug, in layman’s terms indicates a governance double-spend.

Acknowledging the bug, SushiSwap FTX CEO Sam Bankman-Fried, in an interview to Cointelegraph, said that so far, as per their findings, it doesn’t pose an immediate problem for Sushi. One of the reasons for that, he explained that the governance is yet to get activated and assured the users that they are doing everything in their power to fix the issue so that they don’t have to migrate the project to a new contract. 

SushiSwap governance gives the token holders a right to vote for a delegate. From the bug found, SushiSwap was allowing the previous owners of the tokens to vote even after they had transferred their tokens to someone else. Ideally, once transfer of tokens have taken place, the voting delegation should disappear but that wasn’t the case with SushiSwap. 

Jong after explaining the bug cited an example of Compound’s Comp.sol which had a similar mechanism for transfer of delegation. In this he gave a solution that by adding “_moveDelegates” to the current code of Sushiswap one could potentially solve this double spending problem.

A Major Bug Ahead Transfer of Multisig Contract Key

SushiSwap has been in the news from the past week for reasons including anonymous owner Chef Nomi transferring his tokens to ETH with claims of him leaving the community. And then the community forced him to transfer control of the multisig contract to CEO of FTX Exchange, Sam Bankman-Fried. The final decision for the multisig contract will be based on the voting and with this bug found the results could have been altered vastly.

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