Staking ApeCoin [APE] on NFT pools could lead to BAYC loss, as per…
In a tweet to the ApeCoin [APE] community, PeckShield Alert mentioned that there was a serious threat linked with staking the token. As a way of explaining the danger and encouraging holders of APE and Bored Ape Yacht Club [BAYC] to mitigate the risks, the tweet referenced an example.
Read ApeCoin’s [APE] Price Prediction 2023-2024
The well-known blockchain security firm specifically pointed out participating in the activity on NFT Liquidity Pools (LP). These NFT pools allow users to deposit their digital assets into a smart contract, thereby permitting the trading of these assets based on demand and supply.
In this referenced case , PeckShield reported that a user had lost his BAYC and $60,000 worth of APE to a potential exploiter.
<p lang=«en» dir=«ltr» xml:lang=«en»>#PeckShieldAlert If you stake $APE in the NFT pools & sell your #NFT you will lose the staked $APE!Exploiter/Arbitrageur 0x06800a just bought following #BoredApeYachtClub #7810 and got the staked 14.3k $APE (~$60K) https://t.co/8K1fVMlWQp pic.twitter.com/nA9tMDEi1A
— PeckShieldAlert (@PeckShieldAlert) April 9, 2023
Staking ApeCoin became popular among the crypto community in December 2022. And the enticing rewards for NFT holders of assets linked with APE even grew the popularity. Notably, holders of BAYC get the largest share of rewards, and there is a dedicated pool for both.
But now that there is possible insecurity, participants might need to watch how they provide a maximum of 10,094 APE into the pools. However, information from Dune Analytics showed that there were 46.14 million APE already staked in BAYC’s pool.
Source: Dune Analytics
When compared with the other LPs, only the major ApeCoin pool had a higher number of tokens deposited into
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