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Fix typo in ERC4626 docs #5222

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merged 3 commits into from
Sep 23, 2024
Merged

Fix typo in ERC4626 docs #5222

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d551c7a
Fix typo in favor of.
Skyge Sep 23, 2024
bdd02cf
Add changelog entries.
Skyge Sep 23, 2024
907b2ff
Delete .changeset/ten-seahorses-whisper.md
Amxx Sep 23, 2024
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2 changes: 1 addition & 1 deletion docs/modules/ROOT/pages/erc4626.adoc
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Expand Up @@ -29,7 +29,7 @@ image::erc4626-rate-loglogext.png[More exchange rates in logarithmic scale]

=== The attack

When depositing tokens, the number of shares a user gets is rounded towards zero. This rounding takes away value from the user in favor or the vault (i.e. in favor of all the current share holders). This rounding is often negligible because of the amount at stake. If you deposit 1e9 shares worth of tokens, the rounding will have you lose at most 0.0000001% of your deposit. However if you deposit 10 shares worth of tokens, you could lose 10% of your deposit. Even worse, if you deposit <1 share worth of tokens, then you get 0 shares, and you basically made a donation.
When depositing tokens, the number of shares a user gets is rounded towards zero. This rounding takes away value from the user in favor of the vault (i.e. in favor of all the current share holders). This rounding is often negligible because of the amount at stake. If you deposit 1e9 shares worth of tokens, the rounding will have you lose at most 0.0000001% of your deposit. However if you deposit 10 shares worth of tokens, you could lose 10% of your deposit. Even worse, if you deposit <1 share worth of tokens, then you get 0 shares, and you basically made a donation.

For a given amount of assets, the more shares you receive the safer you are. If you want to limit your losses to at most 1%, you need to receive at least 100 shares.

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