{"id":500532,"date":"2022-08-30T20:09:25","date_gmt":"2022-08-30T20:09:25","guid":{"rendered":"https:\/\/ktsl888.com\/?p=500532"},"modified":"2022-08-30T20:09:25","modified_gmt":"2022-08-30T20:09:25","slug":"how-a-solana-based-dex-bricked-itself-locking-500k-in-funds","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/solana\/how-a-solana-based-dex-bricked-itself-locking-500k-in-funds\/","title":{"rendered":"How A Solana-Based DEX Bricked Itself, Locking $500K+ In Funds"},"content":{"rendered":"

It’s not easy being a dev. In recent days, a young Solana-based DEX, OptiFi, faced an unexpected downfall after a simple coding error. The platform released an announcement<\/a> that their mainnet program is now unrecoverable yesterday. The move has resulted in an unexpected shutdown for the DEX.<\/p>\n

Let’s review what we know from the announcement and how something like this could be avoided in the future.<\/p>\n

OptiFi’s Unexpected Shutdown<\/span><\/h4>\n

OptiFi was an options and derivatives focused decentralized exchange (DEX) built on Solana that was less than a year in the making. The platform touted Solana’s low latency transactions, portfolio margining and partial liquidation mechanisms. The platform also brought the “first-ever delta-neutral options AMM vault” on Solana that provided yield to depositors. So how did we get here? According to OptiFi’s full debrief<\/a>, a code update that was moving to Solana mainnet saw a user error that resulted in the use of a ‘solana program close’ command, locking roughly $660K worth of USDC in OptiFi-stored funds in their AMM vault.<\/p>\n

OptiFi has assured that user funds will be compensated (while noting that a large majority of the funds are from an internal team member), and a proposal on the Solana github<\/a> is currently active to address the matter. OptiFi notes in their debrief of a “lesson we learned harshly:”<\/p>\n

EVERY DEPLOYMENT NEEDS A RIGOROUS PROCESS AND SINGLE POINT FAILURE CAN BE AVOIDED. PLEASE\u00a0DON\u2019T RUSH LIKE WHAT WE DID<\/strong>, ESPECIALLY FOR DEFI PROJECTS.<\/p><\/blockquote>\n

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Solana (SOL) has been an emerging player in NFTs and DeFi, despite occasional setbacks like this recent OptiFi debacle. | Source: SOL-USD on TradingView.com<\/a><\/pre>\n
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Related Reading:<\/strong> Data Shows: Traders Unconvinced Of Crypto Bounces, Will Shorts See Pain?<\/a><\/div>\n<\/div>\n

Is It Still Solana Season?<\/span><\/h4>\n

Despite small network setbacks, Solana has still seen strong strides this year in both DeFi and NFT marketplaces. Across NFTs, Solana-based projects like DeGods and Okay Bears, among others, have helped spurred the network to a strangehold of the #2 spot (behind only top dog Ethereum). In the more relevant DeFi, Solana has largely outperformed last year to date metrics, according to DeFiLlama.<\/a> This has been spurred by growing products like Solend, Serum and more. DeFiLlama has Solana listed as the #6 chain in order of total value locked (TVL), at just over $1B worth of funds.<\/p>\n

Building and shipping products is rarely a small task, and this is no exception. It hurts to see ecosystem products, regardless of chain, fall to seemingly small errors, but it unfortunately is a byproduct of this world. Our team extends best wishes to the OptiFi builders as they move forward.<\/p>\n

Related Reading:<\/strong> Raydium Springs Up From Underwater, Could This Be A Ray Of Hope?<\/a><\/div>\n
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Featured image from Pexels, Charts from TradingView.com\r\nThe writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.<\/pre>\n