Since December 05, ApeCoin (APE) holders can now stake their tokens and receive rewards. However, users have already encountered problems and seen their tokens disappear. We take stock of the situation.
ApeCoin (APE) staking available
Planned since this summer, the staking platform for ApeCoin (APE) holders has recently opened its doors. With a value of assets deposited exceeding 30 million dollars in 48 hours, the platform is a success for Yuga Labs.
However, Horizen Labs, the structure chosen to develop ApeCoin staking, faces a few investors who lost all their ApeCoin deposited into one of the available staking pools. Above all, we can say that these losses are not the result of a hack.
To understand this phenomenon, let’s go back to the operation of staking developed by Horizen Labs :
The four staking pools for staking ApeCoin (APE)
Four staking pools are accessible depending on the assets held by investors :
- The 1st pool is only dedicated to ApeCoin holders;
- The 2nd is open to people in possession of an NFT Bored Apes (BAYC) and ApeCoin;
- The 3rd is accessible to holders of an NFT Mutant Apes (MAYC) and ApeCoin;
- The latter is available to owners of an NFT Bored Ape Kennel (BAKC), as well as Bored Apes or Mutant Apes, and ApeCoin tokens.
In these last three pools, in return for greater profitability, the ApeCoin committed are automatically linked to the NFT deposited. Consequently, if the owner of the NFT changes, the owner of the tokens deposited in these staking pools also changes.
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Ineffective warnings?
On Twitter, an employee of Horizen Labs published a message to remind the operation of the staking pools developed for ApeCoin:
🚨 Friendly reminder if you stake ApeCoin in one of the NFT pools and sell your NFT you will lose the staked ApeCoin 🚨
Marketplaces (@opensea, @blur_ioetc.) should include a warning message on their UI.
— Degentraland (@Degentraland) December 5, 2022
“Friendly reminder: if you stake ApeCoin in one of the NFT pools and sell your NFT, you will lose the staked ApeCoin”
Despite everything, less than 24 hours after the deployment of the staking, several victims are to be deplored : by buying three different NFTs, an Ethereum address managed to recover more than 18,000 ApeCoin, equivalent to €71,280 at the current price.
To succeed, the method used by the individual is rather simple : he bought NFTs deposited in a staking pool, recovered the ApeCoin from the pool associated with the NFTs, then resold the NFTs. In this way, he generated nearly $20,000 in profit in the form of ETH and USDC.
What can we learn from it? As Web3 is still very young, vigilance must always be required before committing to a protocol or a project. Consequently, the saying ” Do your own research » is to remember to keep your assets safe.
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Source: ApeStake.io, Etherscan
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Always enthusiastic about new technologies, I gradually moved closer to activities related to Web3 during the year 2021. Over time, I wanted to add my stone to the building. It was then that I became an editor, with the aim of explaining cryptocurrency-related topics to as many people as possible.
Timothy Bourbotte
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