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News January 29, 2025

PSA: I Lost $42k Instantly in a Liquidity Pool So You Don’t Have To!

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In a cautionary tale for crypto investors, a user shared their experience of losing $42,000 on January 25, when migrating assets from a ‘Classic’ Stellar liquidity pool to Aquarius. The mishap occurred by inadvertently placing unequal assets into the stable liquidity pool category, which is meant for pairs of the same value. This resulted in immediate arbitrage exploitation, leading to substantial financial loss. The incident underscores the complexities associated with liquidity pools on the Stellar blockchain and the distinction between stable and volatile pools. The Aquarius team has since suspended deposits to the troublesome pool and plans UI/UX updates to prevent similar occurrences. This account emphasizes the critical nature of understanding crypto pool dynamics and being cautious with automatic migration tools.