After last November’s attack forced dYdX to spend $9 million from its insurance fund, an investigation was conducted. The attacker’s identity was revealed and exchange teams contacted him. We are taking inventory.
Manipulation of SUSHI and YFI: dYdX teams revealed the attacker’s identity
Last November, decentralized exchange (DEX) dYdX was targeted by an attack that led to strong movements in SUSHI and YFI tokens.
This then forced the protocol spends $9 million from its insurance fund in order to cover the resulting liquidations.
We remind you that the attacker manipulated the prices of the affected assets by opening large long positions on the platform, thus increasing the prices, which allowed him to open new positions with profits. For example for YFI more than 100 addresses with x5 levers were involved in the scheme.
Since then, the investigation has continued to identify the person behind said attack, and dYdX indicates that he has made contact:
“Thanks to the efforts of our team, community partners and forensic contractors, the results of the investigation revealed the identity of the attacker and we are in contact with him. (…) dYdX is assisting law enforcement authorities in the investigation of this matter and evaluating all legal options. »
So the platform states that it will take any legal action “as it deems fit under the circumstances“.
As for v3 exchanges, measures have been taken to deal with new similar incidents. To this end, margin requirements have been tightened in less liquid markets.
Monitoring of open positions has also been strengthened, especially over long periods, to better identify potential bad actors. In addition, the initial fraction of the margin on the position “will automatically adjust in case of abnormal activity» in order to influence the user’s ability to choose their hidden profits.
👉 Also in News — USDC Briefly Loses Dollar Fix on Binance Yesterday — What Happened?
For the upcoming v4, the dYdX teams explain it similar features will be present in order to deter any attempt to manipulate the market and that “additional measures» are wanted.
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Source: dYdX
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I timidly discovered the world of blockchain at the end of 2018 in my quest for financial freedom. At first I invested moderately, but it was not until two years later that I bet everything on the movement that was then taking shape. I will dedicate 2021 to better training to gain more knowledge and seriousness. As I often say: I still have a billion things to learn. And what I know, I want to share with you.
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