[Taklimakan Blog] Whales Attack New DeFi Protocol with Arbitrage Deals on Its Launch Day

mmediately after launch, Saddle Finance’s new DeFi protocol was attacked by large arbitrage traders who rushed to warm their hands on it.

On the evening of January 19, a new protocol in the decentralized finance (DeFi) segment — Saddle Finance was launched on the market. As a priority, the project developers identified the fight against the problem of spreads between stablecoins and tokenized (wrapped) crypto-assets. However, within hours of its launch, the new protocol fell prey to whales that were able to make huge profits through arbitrage deals.

The launch turned into a feast for whales

Analyzing the incident, the Rekt blog noted: “Any investor who supports Saddle Finance prefers profit over progress. Why fund a fork offering zero innovation? “

Saddle Finance is a fork of Curve Finance and uses the Synthetix DeFi protocol on the Virtual Synths system. This system is designed to support large trades with minimal slippage across all supported assets. These are currently stablecoins and various versions of wrapped Bitcoin.