dYdX founder claims targeted attack led to $9M insurance claim

Cointelegraph
Cointelegraph

18 Nov 2023 6:56 PM

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.

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You May Ask

What caused dYdX to use its insurance fund to cover $9 million in user liquidations?Which token experienced a 43% price crash on Nov. 17, raising concerns about a possible exit scam?What does dYdX founder Antonio Juliano believe caused the trading losses and decline in the token's price?Were user funds affected by the incident, and how much does the v3 insurance fund currently hold?Why did the incident lead to suspicions of insider involvement, and what claims were made regarding the YFI token's supply?

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