DeFi project OptiFi lost $661,000 in failed update
- August 30, 2022
- 0
Solana-backed DeFi protocol team OptiFi accidentally shut down its mainnet and locked $661,000 of user funds in USDC. OptiFi’s program was closed due to mistakes we made. TL;
Solana-backed DeFi protocol team OptiFi accidentally shut down its mainnet and locked $661,000 of user funds in USDC.
OptiFi’s program was closed due to mistakes we made.
TL; DR
1. We accidentally closed the OptiFi mainnet program and it cannot be recovered
2. 661k USDC locked in PDAs, fortunately 95% of funds come from our team member
3. We will compensate all users funds— OptiFi (@OptifiLabs) 29 August 2022
According to the developers, the error occurred during the protocol code update. The process took longer than expected, possibly due to Solana’s overload.
As a result, they canceled the installation, but only after an intermediate broker account was created. The developers used the faded program shutdown command in an attempt to remove the buffer account.
“It turns out that we don’t fully understand the impact and risk of this command line here. Solana program shutdown is essentially to permanently close the program and send SOL tokens back from the buffer account used by the program to the recipient’s wallet, ”the OptiFi team explained.
The developers have made sure that they will reimburse users with all funds.
They also said they learned a lesson from the incident and are considering moving on, among others:
- distribute updates with the participation of at least three nodes;
- allocate capital pools AMM From the main program to minimize the consequences of such errors.
Richard Patel, developer of Jump Crypto’s Firedancer Solana client, has found a fix that will help prevent similar incidents in the future and possibly return locked OptiFi funds.
https://t.co/9a8IvFRIaK
Feature recommendation to address programs that are irreversibly closed (@OptifiLabs situation)— Richard Patel 🔥💃🏻 (@terorie_dev) 30 August 2022
“To bring this offer to the Solana mainnet, it needs to go through whitepaper. After that, move on to a feature that must be approved by the majority of validators for activation.”
Recall that in March, due to a mistake of the AkuDreams team, the Dutch auction of the NFT project ended with a loss of user funds. 11,539 ETH (~$33.93 million) is permanently locked in the smart contract.
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I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
