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Risks in ParaSpace Contract

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On March 17th, the Web3 Knowledge Map Protocol 0xscope tweeted, saying, \”The ParaSpace contract is not working properly: 1. Users can extract more APEs than the

Risks in ParaSpace Contract

On March 17th, the Web3 Knowledge Map Protocol 0xscope tweeted, saying, “The ParaSpace contract is not working properly: 1. Users can extract more APEs than they thought. 2. User debt calculation errors have led to 268 liquidations in progress.” 0xscope reminded, “Extracting your assets requires you to assume your own risk.”

The contract failed before the ParaSpace protocol was suspended, allowing users to overdraw APE and causing a large number of incorrect clearing

Analysis based on this information:


The Web3 Knowledge Map Protocol 0xscope posted a tweet on March 17th, discussing the issues related to the ParaSpace contract. The tweet mentions two problems that users of the contract might face. It highlights that the users can extract more APEs than they were expecting, and there have been 268 liquidations in progress due to debt calculation errors.

The ParaSpace contract is a smart contract platform that provides a decentralized financial ecosystem. It allows users to borrow, lend, and trade cryptocurrencies. However, as with any smart contract platform, there are inherent risks that users need to consider before getting involved. The tweet by 0xscope emphasizes these risks.

The first issue mentioned in the tweet is the problem of users extracting more APEs than they were expecting. APEs are a tokenized representation of cryptocurrency collateral that users deposit into the ParaSpace contract. Users can borrow these assets against their deposited collateral. However, if the extracting process is not working correctly, users might end up withdrawing more assets than they had put in, leading to potential financial losses.

The second problem mentioned in the tweet is related to an error in the user debt calculation process. This calculation error has led to 268 liquidations in progress, which means that many users are facing the possibility of having their collateral liquidated. This is a severe risk for users, and it emphasizes that smart contract platforms like ParaSpace can have technical issues that can cause significant losses.

The tweet concludes by reminding users that they need to assume their own risks when using ParaSpace. Smart contract platforms can be appealing because they offer decentralization and autonomy to users. However, these benefits come with significant risks. Users need to do their due diligence before engaging with any smart contract platform and understand the risks involved.

In conclusion, the tweet from the Web3 Knowledge Map Protocol 0xscope highlights the inherent risks involved in using smart contract platforms like ParaSpace. The two problems mentioned in the tweet emphasize that users need to be cautious and do their due diligence before engaging with such platforms.

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