OptiFi makes giant blunder, loses $661K

The team permanently closed its blockchain 

In a bizarre story on Solana one of the Solana-based decentralized exchanges made a large blunder that ended up costing the team 660K in assets. 

DeFi does not allow for mistakes as a single error can have results that leave you with a rather hefty bill. OptiFi learned this lesson at the very beginning of this week. 

During an incident report the decentralized exchange began by apologizing to the users of the platform. The apology was for closing the OptiFi mainnet and having no way to recover it. The closure resulted in a total amount of 661K USDC locked in the PDAs on-chain.  

The incident report goes on to claim that Solana should put a warning regarding “solana program close” advising the user about the irrecoverable result of using the action. The team suggests there should also be an extra confirmation step to to make sure that closing the project for life is the decision that the developer was trying to reach.

The team at OptiFi has since promised to return all of the deposits made by users and settle any other user positions. They expect the process to take only two weeks.

How did this happen one may ask, well it seems there were a few issues when it came to upgrading the Solana program and as the deployed tried to upgrade the OptiFi program a certain command was used that should not have been used.

The team at OptiFi plans to use this situation as a learning opportunity and will continue to build in the web3 space. The lost mainnet was only a few weeks old and thus a new version will be created and offered. There will be peer-surveillance at the office from now on to ensure taht at least three people are involved with any future actions.

The OptiFi team warned others against rushing , especially in DeFi. Here’s to hoping that their next effort is their best.


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