A Look Back…
We’ve been here for over a year.
Sometimes it feels like yesterday, and other times it feels like years have passed since the beginning of CZodiac. Remember the early days of the project? Having no worries in the tail end of the ‘Bull Market 2021’…
Does this sentiment resonate with you? You know what this is about. If you’ve discovered CZodiac for yourself more recently, I would like to illustrate a bit of the CZ Lore for the books.
Chinese Zodiac Character Migration
The original plan for the project was a simple zodiac-based meme. The idea was “let’s start with an Ox token and migrate through the critters on the Zodiac wheel every month while reducing token supply and increasing liquidity with each one!”
was cool because he’s just a fancy bull who’s name looks like the first two characters of any smartchain address. Then, after exploring multiple possibilities with ‘Tiger’, such as a small NFT series and the Tiger Hunt blockchain game (which was playable directly on BSC Scan), CZFarm (CZF) and the original farming platform was created. This was briskly followed up by CZUSD, the iconic CZodiac Stabletoken, which was proving to add massive value to CZF and the whole project through its over-collateralized lending.
Community members wanted more. The next 30-day cycle was meant to rotate to Rabbits, and it was approaching quickly. CZodiac was growing fast, but under the new form of a farming/staking protocol. Trifling actors were already looking for ways to disrupt the emerging ecosystem. Mocking the detoured roadmap, spreading fear and confusion, nefariously scouring each smart-contract released… For what?
The Exploit (a lo-carb post-mortem)
— So what did happen?
In November 2021, why did CZF suffer a massive capitulation? Why did CZUSD depeg from the dollar? If you know the answer, you might remember it the same way I do. A brutal exploit performed on the migration contract from the TigerZ token to the CZF token…
an erroneous line of code…
our back door was left open…
The scammer walked right into our house and began stealing as much CZF as he could. It was easy to do. What other options would’ve been easy for him? Pointing out the bug, perhaps? Maybe doing the right thing wasn’t an option that day. JB, it’s not too late to bring back the money you took from the smart-contract that was not performing as intended... Eventually, however, it will be too late.
Back to Reality
Other community members who noticed the exploit then immediately started using the broken contract as well. The scammer was privately encouraging others to raid us. For an instant, CZF was minting harder than the Biden Administration printing USD.
Everyone gave their tokens back to be burned… except the original exploiter. Our developer halted the migration contract and put a trace on any remaining CZF minted from that contract, but the damage was done. The exploiter sold a massive haul of the exploited CZF tokens…
At this point, CZUSD started a violent cascade as people raced to sell it off. It was in this fleeting moment that many investors decided to abandon anything related to the CZodiac project. In the horror-show, CZUSD depegged from the dollar and tumbled all the way to a low of $0.06.
It took months to repair the damage done. By December of 2021, community members who had been holders during the time of the exploit were given a ‘Loss Compensation’ contract along with a myriad of opportunities for their investments to be made whole again. Some community members lost thousands but decided to believe and trust the process. This is the time that we stuck together and we needed each other to get out of it. The exploiter was gone with a large chunk of our money and there was nothing we could do except rebuild. We battled massive fud and an exodus during a bear market for the following months. Everyone was putting heart and soul into the new developments.
CZUSD was eventually brought back to peg by community effort. This effectively allowed CZodiac to change gears into producing yields on Ellipsis staking in their stablecoin swapping factory, currently found at CZUSD on Ellipsis.finance. In February, the vault backing the CZUSD stabletokens had only $10,000. It was held purely by community effort and was made possible with the rise in staking rewards. Over the coming months, this $10,000 was built up to the now $400,000+ in BUSD backing and over $100,000 in other assets acquired (such as BTC, ETH, BNB, etc…)
All of this is visible in the Gnosis vault:
No matter how big the hurry, or how small the contract, always make time for the testing phase. We run the rigorous testing that is required to monitor all the outputs. We don’t let the hype of market sentiment cause us to skip any mandatory steps in protecting the vault. We have a number of precautions that are in place to defend our liquidity. New automation is always in development to take the place of any manual tasks.
If there’s anything more that you’d like to learn or if you have questions, message us at any time.
Disclaimer: This article is for informational purposes only and must not be offered or used as investment, financial, or other advice.