Not So Protected: SafeDollar Stablecoin Falls to $0 After Exploit

In short

  • SafeDollar protocol was exploited by attackers, reportedly for about $250,000.
  • The worth of the SafeDollar stablecoin has plummeted to $0.

The worth of SafeDollar, a DeFi stablecoin constructed on the Polygon blockchain, plummeted to $0 in the present day after an attacker exploited a vulnerability in its liquidity pool.

The group is but to conclude its autopsy of the assault. SushiSwap core developer Mudit Gupta mentioned that the attackers looted about $250,000 value of stablecoins from the platform’s liquidity swimming pools, then dumped these cash in the marketplace by promoting them on PolyDex.

Gupta mentioned that hackers managed to mint an infinite variety of SDO stablecoins by exploiting the yield charges supplied by the platform.

On Monday, SafeDollar’s group informed its Telegram channel that it has “paused actions on SafeDollar and [is] investigating the matter.” As soon as the investigation has concluded, the group will publish a plan to compensate liquidity suppliers.

That is SafeDollar’s second main assault because it launched earlier this month. An attack on June 20 resulted within the lack of 9,959 SDS, the protocol’s share tokens, value round $95,000 on the time.

“If something has “Protected” in its identify, it is normally not Protected,” concluded Gupta. “My condolences to those that acquired rekt on this. It is an ape eats ape world on the market, keep protected.”

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