DeFi Sneak Attack

dYdX was rattled by a scheme to manipulate YFI markets

Jack Inabinet Nov 20, 2023 • 1 min read

dYdX Attacked: Mass liquidations hit dYdX’s V3 Yearn Finance (YFI) market Friday night. YFI is down 40%, dYdX’s insurance fund was forced to pay out $9M, and the exchange’s founder is calling it an attack!

This was pretty clearly a targeted attack against dYdX, including market manipulation of the entire $YFI market

We are investigating alongside several partners and will be transparent with what we discover https://t.co/djWHaaPIua
— Antonio | dYdX (@AntonioMJuliano) November 18, 2023

Contracts outstanding on dYdX’s YFI market had risen steadily since November 8, increasing from $0.8M to $67M on Friday. YFI gained 160% during this period, and dYdX accrued more YFI open interest than any other perpetuals trading platform.

Citizen only

Upgrade to continue reading

Support the Bankless Movement
Premium Feed: Ad Free & Bonus Content
Daily Market Analysis & Research
Airdrop Hunter: Guided, Vetted Projects
Claimables: Find & Claim Airdrops + more
Private Discord w/ David & Ryan

Explore all the benefits

Join for free Log in

Published in Bankless

Your daily guide to level up on Crypto.

Level up on crypto, daily

Join the world’s most popular crypto community with daily alpha, news, & analysis, all free.

Written by Jack Inabinet

93 Articles • View all

Analyst at Bankless. Exploring the frontier. I enjoy learning and writing about the hottest topics in crypto, ranging from blockchains to DeFi to RWAs.