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Automated trading behavior: debunking inaccuracy that Goldfinch is under attack

See spam accounts posting that Goldfinch is under attack? Understanding why algorithmic trading does not pose a threat

  • Two Twitter accounts this week shared pictures of normal and expected trades taking place on-chain, next to false and misleading claims that Goldfinch’s Senior Pool is the victim of a flash loan attack.
  • After investigation the Warbler Labs team was able to confirm that the transactions flagged by these Twitter accounts are indeed normal arbitrage trading transactions, which did not negatively affect the funds or liquidity of Goldfinch participants, and are not flash loan attacks.
  • In fact, these arbitrageurs are helping balance small differences in the FIDU price on Curve and on the Goldfinch dapp, similar to how arbitrageurs balance the price of ETH across AMMs like Uniswap and Sushiswap. This is entirely expected behavior that was discussed in the original governance proposal.
  • Read vetted independent community analyst DeFi Safety’s report rating Goldfinch’s smart contracts amongst the safest in the DeFi industry here, to learn why they stated that Goldfinch has “set the industry standard for front running mitigation and flashloan attack countermeasure documentation.”

What is arbitrage trading?

What is the FIDU Curve pool, and how does it interact with Goldfinch?

What are these claims, and how does Goldfinch know they are false?

Where can I go to learn more?



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Goldfinch Foundation

Goldfinch is a decentralized credit protocol that allows anyone to be a lender, not just banks.