dYdX founder claims targeted attack led to $9M insurance claim By Cointelegraph

[ad_1]



Decentralized exchange (DEX) dYdX was forced to use its insurance fund to cover $9 million in user liquidations on Nov. 17. According to dYdX founder Antonio Juliano, the losses resulted from a “targeted attack” against the exchange.

Based on reports from the dYdX team on X (formerly Twitter), the v3 insurance fund was used “to fill gaps on liquidations processes in the YFI market.” The Yearn.finance (YFI) token dropped 43% on Nov. 17 after soaring over 170% in previous weeks. The sudden price crash raised concerns within the crypto community about a possible exit scam.

Balance changes on dYdX’s insurance wallet. Source: DYDX Explorer