Over 40 percent of DeFi token pairs may be fraudulent – App Developer Magazine

Over 40 percent of DeFi token pairs may be fraudulent – App Developer Magazine

Spread the love

408

According to Rome Blockchain Labs research, over 40% of DeFi token pairs may be fraudulent or duplicates. The research analyzed over 1 million pairs on Uniswap (ETH) and PancakeSwap (BNB).

Rome Blockchain Labs (RBL) has released new research showing that many token pairs on decentralized exchanges (DEXs) may be fraudulent or duplicates. Using its data service, RBL Net, the team analyzed data on over 1,000,000 pairs on Uniswap (ETH) and PancakeSwap (BNB).

In light of the many marketplace crashes and burgeoning fear in the marketplace, due to scandals like FTX and Terra, RBL wanted to investigate how dangerous DeFi really is for the average person. While everyone knows they should Do Their Own Research, how critical is it to really understand the marketplace tikers and symbols prior to investing?

With between 40% and 59% of tokens having duplicate pairs on reputable networks, RBL believes users must be very vigilant when exploring investments. Read on to learn more about the specific findings.

Over 40% of DeFi token pairs may be fraudulent or duplicates, according to Rome Blockchain Labs

Rome Blockchain Labs (RBL) has released new research showing that many token pairs on decentralized exchanges (DEXs) may be fraudulent or duplicates. Using its data service, RBL Net, the team analyzed data on over 1,000,000 pairs on UniswapV2 and UniswapV3 on Ethereum and PancakeSwap on BNB Chain. The research found that of the 190,887 pairs created this year, 81,457 (42.7%) had the same token symbols as another pair as of August 2022. Now, in December of 2022, this has increased to 59.4% of 581 592 Token Pairs.

This phenomenon is likely due to bad actors creating fake tokens with the same ticker as legitimate ones in an attempt to capture assets from unsuspecting traders. However, the research notes that not all duplications are necessarily fraudulent, as legitimate tokens may use the same symbol as a completely different pair.

“Given our data capacity, we wanted to use this information to help prevent new traders from falling victim to scams like I almost did. This research is a reminder that it’s important to do your due diligence and be cautious when trading on DEXs, especially with so many new projects popping up all the time,” said Alexander Szul, co-founder of RBL and BENQI.

Since the original research was completed in August 2022, RBL has continued monitoring the situation with a broader scope. Now, the duplicate pairs are considered from the start date of each exchange (Uniswap V2 – 05/18/20; Uniswap V3 – 05/04/21; PancakeSwap – 09/20/20) and the changes in duplicate pairs are highlighted. These iterations of the research are able to infer:

  • The more popular a pair, the more duplicates exist; scammers are praying on people wanting to make quick, uneducated decisions in a high-pressure environment.
  • The longer an exchange exists, the more duplicate pairs will exist; users should be vigilant no matter the success, popularity, or authority of a DEX.
  • As the ecosystem continues to grow and flourish, so will the potential for being scammed.

RBL will continue to offer insights and statistics quarterly, beginning in January of the New Year.

The full results of the research can be found in the chart below.

Results as of 08/04/22

  All pairs         Active pairs      
Exchange Total pairs

# w/ duplicates

# of duplicates

%

Most duplications

Total active pairs

# w/ duplicates

# of duplicates

%

Most duplications

Uniswap V2

23,514

2,812 4,854

20.6%

BURN/WETH 24 952 13 27 2.8% WETH/TINU 3

Uniswap V3

2,041

195 240 11.8%

APE/

WETH 6

323 10 11 3.4% SHI/WETH 3

PancakeSwap

165,332

22,879 76,363 46.2%

TEST/

WBNB 354

4,823 274 362 7.5% Google/WBNB 6
Total

190,887

25,886

81,457 42.7%   6,098 297 400 6.6%  

Pairs created from exchange creation date* to 2022-09-30; Active as of 2022-10-18

  All Pairs         Active pairs total        
Exchange Total pairs # w/ duplicates # of duplicates % Most duplications Active pairs # w/ duplicates # of duplciates % Most duplications
Uniswap V2 97,654 13,643 37,389 38.30% SINU/WETH 79 1853 40 40 2.20% All active pairs 2
Uniswap V3 8,208 473 574 7.00% APE/WETH 6 939 8 8 0.90% All active pairs 2

PancakeSwap

795,705 84,592 496,447 62.40% PORNHUB/WBNB 693 6,511 335 403 6.20%

Cake-LP/WBNB 7

Total 901,566 98,708 534,410 59.30%   9,303 383 451 4.80%  

Pairs created from exchange creation date* to 2022-11-30; Active as of 2022-12-20

  All Pairs         Active pairs total        
Exchange Total pairs # w/ duplicates # of duplicates % Most duplications Active pairs # w/ duplicates # of duplciates % Most duplications
Uniswap V2 120,372 16,676 48,564 40.3% SINU/WETH 97 2,037 56 56 2.7% All active pairs 2
Uniswap V3 9,175 543 678 7.4% APE/WETH 6 1,038 10 10 1.0% All active pairs 2

PancakeSwap

849,452 89,975 532,349 62.7% INFINITY/WBNB 728 6,225 341 401 6.4%

MT/USDT 6

Total 978,999 107,194 581,592 59.4%   9,300 407 467 5.0%  
Exchange Total pairs # w/ duplicates # of duplicates % Change Total Active Pairs # w/ duplicates # of duplicates % Change
Uniswap V2 22,718 3,033 11,175 29.9% 184 16 16 40.0%
Uniswap V3 967 70 104 18.1% 99 2 2 25.0%

PancakeSwap

53,748 5,383 35,902 7.2% -286 6 -2 -0.5%
Total 77,433 8,486 47,182 8.8% -3 24 16 3.5%

Subscribe to App Developer Magazine

Become a subscriber of App Developer Magazine for just $5.99 a month and take advantage of all these perks.

MEMBERS GET ACCESS TO

  • – Exclusive content from leaders in the industry
  • – Q&A articles from industry leaders
  • – Tips and tricks from the most successful developers weekly
  • – Monthly issues, including all 90+ back-issues since 2012
  • – Event discounts and early-bird signups
  • – Gain insight from top achievers in the app store
  • – Learn what tools to use, what SDK’s to use, and more

    Subscribe here

Featured Stories

Unicorn Academy AR education platform from STTE

Unicorn Academy AR education platform from STTE Tuesday, December 27, 2022

ChatGPT gains 1 million users within 5 days

ChatGPT gains 1 million users within 5 days Friday, December 23, 2022

KulaDAO cryptographic project on track for the 2023 ICO

KulaDAO cryptographic project on track for the 2023 ICO Thursday, December 22, 2022

Why SonarSource is growing so much

Why SonarSource is growing so much Thursday, December 22, 2022

Indie game dev platform The Mirror lands $2.3M in funding

Indie game dev platform The Mirror lands $2.3M in funding Thursday, December 22, 2022

Data movement simplified from Equalum and Yellowbrick

Data movement simplified from Equalum and Yellowbrick Monday, December 19, 2022

EuroSTAR Software Testing Conference 2023 speaker lineup

EuroSTAR Software Testing Conference 2023 speaker lineup Monday, December 19, 2022

Stay Updated

Sign up for our newsletter for the headlines delivered to you

SuccessFull SignUp

App Developer Magazine December-2022 for Apple and Android mobile app developers

Get More App News

Tags

Related News

roofstock-sells-alabama-rental-property-via-nft-–-blockworks
sec-and-cftc-legal-action-against-mango-markets-hacker-will-boost-defi,-moody-–-bitcoinist
cftc-head-looks-to-new-congress-for-action-on-crypto-regulation-–-cointelegraph