๐Ÿ”นThe Flash Loan protection mechanism

Zircon has a system designed to prevent value extraction from flash loans and market manipulation.

A Pylon pool will go into lockdown when it detects too large of a liquidity change in the span of one or a few blocks (approximately 4% of the poolโ€™s value in 5 blocks or less). This mechanism is triggered either by enormous swaps, or enormous one-sided additions/removals of liquidity.

The lockdown lasts for a few blocks and allows one โ€œstrikeโ€ before triggering, so the first large mint/burn can come in undisturbed. The protection acts by first increasing the fee, but above a certain level the transaction will just revert.

If you see very large fees being quoted by the system, it's likely that the pool is under partial lockdown. Wait a few minutes so that it cools down and unlocks itself.

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