DeFi infrastructure company Enso said in a report that it has identified a class of malicious liquidity pools it calls “toxic pools.” According to the company, these contracts manipulate transaction simulations by showing wallets and DEX aggregators artificially favorable quotes in read-only environments, then switching behavior once the trade is sent on-chain. The result can be execution at a worse price or a failed swap.
Enso said one manipulated Curve pool processed more than 129,000 swaps and generated roughly $225,000 in inflated quotes. It also linked more than 37,000 reverted transactions to nearly $30,000 in gas costs. On Polygon, the firm described a malicious Uniswap v4 hook that drew in routing systems with fake exchange rates before producing a 99.1% transaction failure rate.
The company said it has updated Enso Shield, its execution protection product, to detect fake quotes in Ethereum and Polygon environments.
DeFi infrastructure company Enso said in a report that it has uncovered a class of malicious liquidity pools it calls “toxic pools.” The pools manipulate trade simulations by returning false best quotes to wallets and DEX aggregators, then changing their logic when the transaction is actually executed on-chain.
Enso said the malicious contracts can detect read-only simulation environments and return optimized prices there. Once the trade is broadcast on-chain, the same contracts may execute at a worse price or cause the transaction to fail.
Cases involving Curve and Uniswap v4
According to Enso, one manipulated Curve pool processed more than 129,000 swaps and led to about $225,000 in inflated quotes. It also said more than 37,000 transactions reverted, consuming nearly $30,000 in gas fees.
On Polygon, Enso described a malicious Uniswap v4 hook that lured routing systems with fake exchange rates and then triggered a 99.1% transaction failure rate.
Enso Shield update
Enso said it has updated Enso Shield, its execution protection product, to detect fake quotes in Ethereum and Polygon environments.
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