Recent $9 million insurance fund exploit, dYdX’s Antonio Juliano has made a clarion call for community assistance, eschewing negotiations with the perpetrators. On November 17, the DeFi protocol dYdX was thrust into the limelight as its v3 chain became the arena for a sophisticated financial breach, which Juliano confirmed did not impact the dYdX chain itself. The exploit, which precipitated a 43% plunge in the YFI token’s value, was initially feared to be an exit scam.
Juliano, in a statement on X, emphasized the vulnerability of the v3 chain’s central components, which he believes may have facilitated the attack. The breach saw a staggering $38 million worth of YFI token long positions liquidated, erasing over $300 million from the token’s market cap and fueling speculation of an insider’s involvement.
In a resolute stance, Juliano stated, “We will not pay bounties to, or negotiate with the attacker.” He revealed that significant strides have been made in identifying the attacker, with plans to involve the FBI in the matter.
The community-driven approach to resolving the incident marks a departure from conventional bounty payouts to exploiters. Instead, Juliano has pledged to reward those aiding the investigation, rallying the dYdX community to unite against the security breach. This strategy underpins dYdX’s commitment to transparency and collective problem-solving within the DeFi space.