Upon extensive research into the current DeFi space and consultation with experts within the field and based on feedback from the community and partners, XFai has decided to adjust the XFai Liquidity Generation Event (LGE) date from April 8 to April 15. The decision was taken in full consideration of protecting the XFai community from a small number of newly-identified vectors and in line with our anti pump and dump strategy. The adjusted date will provide the XFai team time to develop solutions to fully mitigate against potential bot attacks that could inflict potential risks to the LGE participants particularly in terms of price spikes and dumps.
Within the DeFi space, bot attacks during the first half an hour of the launch have been rampant to the point that it has now become something to expect. With many of the XFai team members having extensive experience in DeFi, a trend of rapidly-evolving sophistication in these bot attacks have been noticed especially during the last month. While the existing XFai Potentializer smart contract does effectively nullify the risks of a bot-driven supply-side attack, the current trend of the bot attacks range from demand-side attack to sandwich attacks, and arbitrage exploitation. The XFai LGE has been built to prevent these bot attacks from being successful, however the community and partner feedback has motivated the team to look into all possible angles of the bot attacks being successful in exploiting the liquidity farmers getting involved with XFai through the LGE. As a part of our rigorous testing we have identified some limited successful scenarios of bot attacks, and the team has decided to adjust the LGE date to build, implement, and audit counter-bot measures to ensure a successful LGE that gives maximum value to the participating liquidity farmers.
In order to further protect the XFai community, XFai has entered into a strategic partnership with friendly, professional market makers to protect the community from bot-driven pump and dumps, sandwich attacks, and arbitrage attacks driven by demand-side attacks. Moreover, XFai has secured partnerships with early liquidity providers to provide the initial liquidity buffer to drive the cost of the bot attacks astronomically high, making these attacks impossible to fund and coordinate.
The development of counter-bot measures take time to build and deploy. The XFai team has been spurred on by the community’s excitement, enthusiasm and support and we are committed to completing this process. The additional 7-day period between the originally-announced LGE date and the new LGE launch date will provide ample time for the partnered, third-party audit firms to complete the audit with the newly-implemented changes in place and those being finalized. XFai has secured a response from the audit firms that the audit will be completed before the newly-announced LGE launch date of April 15, 2021.
The team at XFai believes in putting the community first. While the decision was not taken lightly, the team is confident that this is the best course of action to protect the community and to put an end to these bot attacks that have rendered themselves into an almost expected outcome in the DeFi space. To provide further clarification and address potential individual concerns of the XFai community, Chief Scientist Taulant Ramabaja has decided to participate in a 1-hour AMA in the XFai community Telegram group on a daily basis. Additional details about the AMA will be shared soon.
We thank you for your enthusiasm and continued support, and look forward to having a successful launch of the XFai LGE on April 15, 2021.
XFai develops tooling for the DeFi space, graphing it to build game-changing products. The XFai DLO is set to invite mid and small-cap tokens to start earning APY on their token holdings, while the XFai LGE is set to become industry-first in providing a more efficient, transparent, and fair way for everyone to get involved at an early stage. The LGE for XFai’s native token, XFIT, is set to launch on 15thApril 2021. We invite everyone to join the DeFi revolution, spearheaded by XFai.