dYdX, a decentralized exchange, faces a $9 million insurance claim due to a purported targeted attack on Yearn.finance tokens. Founder Antonio Juliano suspects market manipulation, investigating alongside partners.
The incident impacted $38 million worth of YFI tokens, causing a $300 million market cap drop. The v3 insurance fund, still holding $13.5 million, protected user funds. Community concerns arise about insider involvement in the YFI market.
Decentralized exchange dYdX utilized its v3 insurance fund to cover $9 million in liquidations, citing a targeted attack on Yearn.finance (YFI) tokens.
Founder Antonio Juliano alleges market manipulation, investigating the incident that liquidated nearly $38 million in YFI long positions.
The YFI market’s sharp decline wiped over $300 million from its market cap, triggering suspicions of insider involvement.
Despite the impact on market value, user funds remain secure, with the v3 insurance fund retaining $13.5 million. Concerns about the concentration of YFI token supply in developer-controlled wallets surface. dYdX plans a comprehensive risk parameter review and potential software adjustments.
The community awaits responses from dYdX and Yearn.finance regarding the incident.
