Lord777
Professional
- Messages
- 2,579
- Reaction score
- 1,471
- Points
- 113
On November 17, about $9 million from the insurance fund of the dYdX decentralized derivatives exchange was used to cover liquidations of user positions in the Yearn Finance token (YFI) market.
The team assured that the fund with a balance of $13.5 million "is still well funded", user funds were not affected, and the incident is being investigated.
According to dYdX founder and CEO Antonio Giuliano, the losses resulted from a "targeted attack" on the exchange, which included " manipulation of the entire YFI market."
"We are conducting an investigation together with several partners and will be frank about what we find," he added.
Arkham Intelligence experts noted that the YFI price drop of about 40% that occurred the day before led to the liquidation of positions on dYdX in the amount of $50 million.
Experts noted that YFI is usually very rarely traded on dYdX, but a sharp jump in prices over the past few days has led to open interest peaking at $60 million. The value was half of the total value for the asset.
Giuliano confirmed this information in a message. According to him, the attack was carried out by "well-capitalized entities" in order to siphon funds from the insurance fund. Two weeks ago, a similar attempt was made to manipulate the SUSHI market, this time they managed to withdraw a significant amount in USDC before the price collapse, the head of the exchange said.
As a measure against potential incidents in the future, the dYdX team has increased the initial margin requirements for a number of low-liquid tokens such as EOS, RUNE, AAVE and YFI.
The team assured that the fund with a balance of $13.5 million "is still well funded", user funds were not affected, and the incident is being investigated.
According to dYdX founder and CEO Antonio Giuliano, the losses resulted from a "targeted attack" on the exchange, which included " manipulation of the entire YFI market."
"We are conducting an investigation together with several partners and will be frank about what we find," he added.
Arkham Intelligence experts noted that the YFI price drop of about 40% that occurred the day before led to the liquidation of positions on dYdX in the amount of $50 million.
Experts noted that YFI is usually very rarely traded on dYdX, but a sharp jump in prices over the past few days has led to open interest peaking at $60 million. The value was half of the total value for the asset.
Giuliano confirmed this information in a message. According to him, the attack was carried out by "well-capitalized entities" in order to siphon funds from the insurance fund. Two weeks ago, a similar attempt was made to manipulate the SUSHI market, this time they managed to withdraw a significant amount in USDC before the price collapse, the head of the exchange said.
As a measure against potential incidents in the future, the dYdX team has increased the initial margin requirements for a number of low-liquid tokens such as EOS, RUNE, AAVE and YFI.
