The Switcheo exchange team has issued a statement addressing inaccurate fees caused by a backend update on January 24th. The update intended to update the fee oracle service to provide “more precise exchange rates” for the Ethereum network, but the change also impacted fees for NEO trades when using SWTH tokens as the fee payment method.
Incorrect Fee Issue
The fee oracle service is designed to calculate fair exchange rates between token pairs, providing users with the ability to pay fees in different tokens. The update intended to better calculate how many tokens should be paid to cover Ethereum’s gas network fees, and set up the infrastructure for cross-chain exchanges with any token usable for fees.
On Sunday 27th, the team noticed that a small number of users were being significantly overcharged in some cases when paying NEO network trade fees with SWTH tokens, with other uses receiving lower fees than usual. The update was reverted upon discovery of the issue.
Switcheo has manually refunded all users who paid/burned extra SWTH from trading fees by airdropping the difference to their respective addresses.
Switcheo notes: “This error was not detected by the smart contract as it does not track exchange rates or accept external price oracles, and therefore the maximum burn amount of SWTH is not enforced — this will be corrected in our future contract(s).”
The team also notes that the update has been patched and redeployed, which should allow for “fairer and typically lower” fees when trading on the Ethereum network. The update also intends to provide the option for “more competitive fee structures in the long run.”