dYdX suffers a $9 million insurance fund breach linked to alleged Yearn.Finance market manipulation
FXstreet
20 Nov 2023 11:59 PM
dYdX (DYDX), a proof-of-stake blockchain network, suffered a huge loss following the recent incident in the Yearn.Finance network, compelling the network to dip into its insurance fund in a calculated attempt to fill the liquidity gap. ...
- dYdX v3 insurance fund used $9 million to fill the liquidity gap caused by Yearn.Finance liquidation.
- The incident affected both dYdX and Yearn.Finance ecosystems.
- The liquidations of YFI longs looking to profit from dYdX caused the scary price action.
- The v3 insurance fund still has $13.5 million remaining and no user funds were affected.
- The targeted attack involved market manipulation of the YFI token.
- The attack resulted in higher margin requirements for low liquidity tokens on dYdX.
The sentiment of the article is negative due to the loss suffered by dYdX and the targeted attack on its network.
You May Ask
How much money did dYdX use from its insurance fund to fill the liquidity gap caused by Yearn.Finance liquidation?Did the incident only affect dYdX or both dYdX and Yearn.Finance ecosystems?What caused the scary price action in the market?Were any user funds affected by the attack on dYdX?Which tokens experienced higher margin requirements on dYdX after the attack?