The OptiFi DeFi protocol team on Solana accidentally closed its mainnet, locking users’ USDC funds worth $661,000.
OptiFi’s program has been closed by mistakes we made.
TL;DR
1. We accidentally closed the OptiFi mainnet program and it’s not recoverable
2. 661k USDC is locked in the PDAs, luckily 95% of the fund is from our team member
3. We will compensate for all users’ funds— OptiFi (@OptifiLabs) August 29, 2022
According to the developers, the error occurred during an update of the protocol code. The process took longer than expected, probably due to Solana congestion.
As a result, they interrupted the deployment process, but an intermediary account was created. In attempting to delete the buffer account, the developers used the solana program close command.
“It turned out that we did not fully understand the impact and risk of this command line. Solana program close, in fact, is intended for the final closure of the program and sending SOL tokens from the buffer account used by the program back to the recipient’s wallet,” explained the OptiFi team.
The developers assured that they will compensate all users’ funds.
They also said they had learned lessons from the incident and plan, among other things, to:
- deploy updates with at least three nodes participating;
- separate capital pools in the automated market maker (AMM) from the main program to minimise the consequences of such errors.
Richard Patel, developer of Solana client Firedancer from Jump Crypto, proposed a fix that would help prevent such incidents in the future and, presumably, recover the blocked OptiFi funds.
https://t.co/9a8IvFRIaK
Feature proposal to address irrecoverably closed programs (@OptifiLabs situation)— Richard Patel 🔥💃🏻 (@terorie_dev) August 30, 2022
“To bring this proposal to the main Solana network, it must undergo a technical review. After that — advance to the function that must be approved by a majority of validators for activation,” he noted.
Earlier in March, due to an error by the AkuDreams team, the Dutch NFT auction of the project ended with users’ funds lost. Over 11,539 ETH (~$33.93 million at the time) were permanently locked in the smart contract.
Read ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analysis.