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- Antonio Juliano shared that no user funds were lost in the latest YFI hack.
- In the post, Juliano revealed that he believes this attack was an intentional attempt to drain funds from the dYdX insurance pool.
- dYdX’s founder also stated that the attacker attempted an unsuccessful attack on the dYdX SushiSwap (SUSHI) market 2 weeks ago.
The founder of dYdX, Antonio Juliano, shared an update regarding the hack that dYdX suffered over the past few days. According to an X post published yesterday, no user funds have been lost.
Here are the main points we know about the $YFI incident on dYdX so far:Reminder no user funds have been lost, but it is critical we understand what happened and adjust accordingly– in the part few days $YFI open interest on dYdX spiked from $0.8m -> $67m– basically all of…— Antonio | dYdX (@AntonioMJuliano) November 18, 2023
Leading up to the incident, open interest for yearn.finance (YFI) spiked from $0.8 million to $67 million. Juliano is confident that this spike was driven by one malicious actor in an “intentional market manipulation attempt by a well capitalized actor(s) designed to drain funds from the dYdX insurance pool”.
Before this, it seems the same actor attempted an unsuccessful attack on the dYdX SushiSwap (SUSHI) market 2 weeks ago. Given the fact that open interest for YFI was “higher on dYdX than any other perp venue”, the dYdX team took action to increase initial margin ratios for YFI prior to the price crash.
This attempt was not enough, however, according to Juliano. As a result, YFI’s price crashed. YFI’s price dropped to a low of $8,881.45 over the past 24 hours. Since reaching this low, it has climbed 3.94% according to CoinMarketCap. Subsequently, the cryptocurrency was trading closer to its 24-hour high of $9,890.13, as its price stood at $9,560.87.
There was a substantial drop in the cryptocurrency’s 24-hour trading volume. At press time, YFI’s total volume stood at $263,100,216. This was a drop of more than 45% compared to what it was the previous trading session.
Daily chart for YFI/USDT (Source: TradingView)
YFI’s price was in a strong positive trend over the past 2 weeks. During this period, the altcoin’s price climbed from an open of $6,294 on 9 November 2023 to a high of $15,955 on 17 November 2023. Just 24 hours later, YFI’s price plummeted more than 33% yesterday. During this strong drop, the altcoin’s price reached a low of $8,258 before closing at $9,681.
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