DeFi infrastructure firm Enso said in a July 16 report that it identified a class of malicious liquidity pools it calls “toxic pools.” According to the company, these contracts manipulate trade simulations by showing wallets and DEX aggregators false best quotes, then switch behavior when the transaction is actually sent on-chain. Enso said the contracts can detect a read-only simulation environment and return an optimized price during that stage, only to execute at a worse rate or cause the trade to fail once broadcast. The report said one manipulated Curve pool processed more than 129,000 swaps and resulted in about $225,000 in inflated quotes. It also said more than 37,000 transactions were reverted, consuming nearly $30,000 in gas fees. On Polygon, Enso said a malicious Uniswap v4 hook used fake exchange rates to attract routing systems and then produced a 99.1% transaction failure rate. The company added that it has updated Enso Shield, its execution protection product, to detect false quotes on Ethereum and Polygon.
DeFi infrastructure company Enso said in a July 16 report that it has identified a class of malicious liquidity pools it calls “toxic pools.” According to the company, the pools manipulate trade simulations by returning false best quotes to wallets and DEX aggregators, then change their logic when the trade is actually executed on-chain.
Enso said the malicious contracts can detect a read-only simulation environment and provide optimized prices during that stage. Once the transaction is broadcast on-chain, the same contracts either execute at a worse price or cause the transaction to fail.
Manipulated Curve pool data
Enso said one manipulated Curve pool handled more than 129,000 swaps and generated about $225,000 in inflated quotes. The report also said more than 37,000 transactions were reverted, consuming nearly $30,000 in gas fees.
Malicious Uniswap v4 hook on Polygon
On Polygon, Enso said a malicious Uniswap v4 hook used fake exchange rates to attract routing systems, then triggered a 99.1% transaction failure rate.
Enso Shield update
Enso said it has updated Enso Shield, its execution protection product, to detect false quotes in Ethereum and Polygon environments.
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