dYdX founder claims targeted attack led to $9M insurance claim
Decentralized exchange dYdX was forced to use its insurance fund to cover users liquidations after a profitable trade in the YFI market wiped out positions. ...
- Decentralized exchange (DEX) dYdX used its insurance fund to cover $9 million in user liquidations on Nov. 17, resulting from a "targeted attack" against the exchange.
- The attack specifically targeted long positions in Yearn.Finance (YFI) tokens, causing a 43% price crash and raising concerns about a possible exit scam.
- dYdX founder Antonio Juliano believes market manipulation caused the trading losses and decline in YFI.
- The v3 insurance fund still holds $13.5 million, and user funds were not affected.
- The incident led to a $300 million decrease in YFI's market capitalization, sparking suspicions of insider involvement.
- Claims were made that 50% of YFI token supply was held in 10 wallets controlled by developers, but some of these holders are crypto exchange wallets.
- dYdX and Yearn.Finance's teams have been contacted for comment.
The sentiment of the article is negative, as it discusses a targeted attack on dYdX, resulting in significant losses and suspicions of market manipulation and insider involvement.