Photo by Danilo Capece on Unsplash

Uniswap rug-pulling 101 — Mark Cuban style

Naz
2 min readJan 28, 2021

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How to make 2 Lambos in 3 hours

Step 1

Have Mark Cuban ping a tweet that he has made an NFT artwork.

Mark is an artist at heart

Step 2

Create a fake ERC20 token BPL.

Step 3

Send our boi Mark some of that crap.

Step 4

Fund a uniswap liquidity pool with 51 ETH and 100k fake token that is worthless.

Step 5{P

FOMO. People ape-ing like there is no tomorrow. x * y = k means that asymptotically, the curve goes to infinity when the quantity of one token goes to zero. That means that you will get a shit exchange rate. So in this case, people start buying this useless fake token by exchanging their ETH for it.

Step 6

Rug-pull and remove the liquidity from the pool. Since you were the first one to add the liquidity, you control a large portion of the pool, represented by UNI L2…

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Naz

I crave knowledge. Mathematical knowledge and then computer science.