What happened
Quick Summary
The $MODELPI token suffered an attack or rug pull on March 10, 2025, resulting in a loss of ~$107K. The issue stemmed from a burn mechanism affecting the swap pair's address, likely causing price manipulation or liquidity depletion.
Details of the Exploit
The incident was identified by Tikkala Security, which pointed out that the token’s burn function improperly affected the swap pair’s address. This suggests:
- Burn Mechanism Exploitation – The contract likely included a function that burns tokens from any address, including the liquidity pool.
- Impact on K Constant – In AMM-based DEXs (e.g., PancakeSwap), the constant product formula (x * y = k) maintains price balance. If the LP’s balance is altered unnaturally (e.g., by burning tokens from the pair), it can severely impact price calculations.
Protocol details
Classification
Token
Protocol Type
Exploit/Other
Evidence
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