With Funds Returned business goes back to normal
Mango Markets Retrieves Funds
Earlier in October Mango Markets was the victim of an attack that saw the hacker take over $114 million in user deposits. The team at Mango was able to negotiate a return of $67 million and with that return of funds, some Solana=based projects are able to return to business as usual.
Tulip and UXD are two decentralized finance protocols on Solana that were forced to halt all transactions due to the Mango Markets exploit. Once the funds were returned to Mango Markets the lending protocol opened up claims for users and projects to recover funds that were stolen. At the time of the claim Tulip and UXD received their respective funds and took steps to reopen their services.
UXD New Stablecoin
UXD is a decentralized stablecoin protocol on Solana. The platform lets its users know that all assets had been recovered via a tweet:
UXD Protocol was able to claim the funds from @mangomarkets!— UXDΔ (@UXDProtocol) October 26, 2022
We received 1,601,0171.23 USDC, 125,637.9571 SOL, 4,953.65348 SRM, 10,000.34093 MNGO. As a result of selling SOL, SRM, MNGO for USDC, the total USDC that has been returned to the insurance fund is 19,965,020.9128 USDC.
The stablecoin presented by UXD is able to maintain its value by allocating funds to third-party investment strategies which include supplying its holdings on lending platforms and earning yield. Initially, the loss on the UXD platform exceeded $19 million as that was the amount deposited on Mango Markets. With the return of all of the funds, the team at UXD has decided to go full steam ahead with all plans which include the minting of a new stablecoin. The team says there is a need for a reset of the “asset-liability management module” before that starts, however.
The founder of UXD, Kento Inami made a statement about the protocol and how resuming work:
“UXD Protocol was able to recover all funds that were exposed to Mango Markets. We now have enough capital in the insurance fund to pave the way for the asset liability management module, which will be released very soon,”
UXD Protocol founder Kento Inami
Tulip Reopens User Withdrawals
Tulip is a Solana-based yield aggregator that allows users to deposit funds and allocate them to different protocols as part of a strategy that creates “strategy vaults.” Tulip has stated that they were able to recover $2.5 million worth of assets. The assets were originally staked on Mango Markets on behalf of its users.
The Tulip USDC RAY ( Raydium) strategy vault was the victim as that vault saw the loss of 2.4 million USDC tokens and 68,465 Raydium tokens ( which is about $30,000). With the return of the funds, the team at Tulip is able to go back to work and continue to provide for their customers.
Both USDC and $RAY strategy vaults are now fully reenabled. Users can deposit or withdraw. The vaults will only deposit in Tulip lending pools for now as the team reevaluate risk across the ecosystem.— Tulip Protocol (@TulipProtocol) October 26, 2022
If you have any issues, please reach out on the Discord. https://t.co/cqaEsf2kCZ
There have been no real responses on whether the two platforms will end up leaving Mango Markets or if there are any other concerns about this happening again in the future. Currently, the two platforms are still using Mango Markets. The defi sector has been victim to many hacks and exploits lately without proper security this may not be the last time something like this may happen, let us hope for the best for all involved.
Did you enjoy this article? There is so much more about web3 on Solanews
Try these articles as well