Svmuu News: In a report dated July 16, DeFi infrastructure company Enso disclosed a type of malicious liquidity pool known as “toxic pools,” which manipulate transaction simulations to return false best quotes to wallets and DEX aggregators, then alter the logic when the transactions are actually executed on-chain.
Enso stated that the malicious contracts in question can identify read-only simulation environments and return optimized prices, but once the transactions are broadcast to the blockchain, they are executed at worse prices or result in failed transactions. One manipulated Curve pool processed over 129,000 swaps, resulting in approximately $225,000 in inflated quotes, while over 37,000 transactions were rolled back, consuming nearly $30,000 in gas fees.
On Polygon, a malicious Uniswap v4 hook lured the routing system with fake exchange rates, subsequently triggering a 99.1% transaction failure rate. Enso stated that it has updated its execution protection product, Enso Shield, to detect fake quotes in both Ethereum and Polygon environments.