The AkuDreams NFT Collection Trapped in a Smart Contract

AkuDreams is an NFT collection hosted on the Ethereum blockchain. All of its funds, 11,539 ETH, linked to the creation of the coins in the collection remain blocked. Indeed, following a mishandling by a developer, it is now an inaccessible smart contract. These are indeed two code errors that led to the total loss of these Ether.

$34 million, or 11,539 eth, is definitely locked into the AkuDreams contract forever. These tokens cannot be retrieved by other users or by the development team.

An error from the AkuDream project

The very successful launch of AkuDreams quickly turned into a fiasco for the project team. The highly anticipated collection of avatars has been auctioned off. But due to some issues in the smart contract code, this collection suffered big problems.

The auctions carried out for the NFT collection were based on the model called ” dutch auction “. In this mode of operation, the lowest bid in the auction will set the price for everyone. This means that all bids higher than the lowest bid must refund the lowest bid. Many users and investors have praised the project’s efforts on a true auction method.

Due to a bug in the smart contract, $34 million, equivalent to 11,539 ETH are permanently lost to the project. The smart contract developer made two mistakes. The first is the fact of interrupting reimbursements. He should have just slowed down the sending of requests from other contracts on his AkuDreams smart contract. Despite the omission of this action, a malicious person was able to send a falsified refund request via a malicious contract. That’s what broke the repayment loop of the contract. The latter makes it possible to prevent the withdrawal of funds, as long as the refunds are not made. This had the impact of crashing the system. Because of this, the refund method could not work properly.

The second mistake made concerns the storage of data inside an index, itself linked to the user. It is thanks to this auction data that refunds can be executed. The implementation of refunds increments via a single variable which causes a delta when a user performs multiple create operations. Refunds did not work in duplicates since for the index a user could only do one action.

Creating a smart contract

Deploying a smart contract requires consideration of several factors. Above all, all smart contracts must follow a strict testing protocol. These are also intended to check for bugs on an NFT staking contract, for example. To successfully deploy a smart contract like that of AkuDreams, you must:

  • Avoid calculation errors
  • Select the right contract
  • Carry out several tests and ensure that they are conclusive
  • Avoid locking millions of dollars into a single contract
  • Keep cash available

Indeed, AkuDreams experienced a large breach that blocked 11,539 ETH or $34 million. The calculation of the number of bids was wrong. This is what mainly caused the validation to fail permanently and thus prevent the funds from being withdrawn.

Conclusion

The loss of AkuDreams’ NFT collection comes from errors in the code of smart contracts. A total of 11,539 ETH are lost and trapped in the smart contract. The project, however, promised to reimburse all investors by highlighting their gross mistakes.

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Emile Stantina

Interested in investment and financial markets after a business school in Chambéry, the passion for cryptocurrencies was obvious. The blockchain is surely the universal tool of tomorrow.



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The AkuDreams NFT Collection Trapped in a Smart Contract


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