Safe Dollar DeFi protocol token devalues after hack

The Safe Dollar DeFi protocol on the Polygon blockchain was hacked, and its stablecoin devalued. The project team warned users in its Telegram channel.

According to the statement, developers paused liquidity pools and are investigating the incident. Users were asked to refrain from transacting with the SafeDollar (SDO) stablecoin and to withdraw their funds.

According to RucDoc, on June 28, unknown actors siphoned out $250,000 in USDT and USDC from the protocol’s smart contract.

An unverified contract looks to have siphoned out the money.

Please WITHDRAW and REVOKE PERMISSIONS whilst awaiting for more details to emerge. pic.twitter.com/5zpXzeEUud

— Rugdoc.io (@RugDocIO) June 28, 2021

SDO — a USD-pegged algorithmic stablecoin. According to the project’s site, its price had fallen to $0.

Analysts at PeckShield say the attackers exploited a vulnerability in the protocol’s codebase that allowed unlimited minting of SDO. The Safe Dollar team will publish a detailed account after the investigation.

The bug was exploited to mint 831,309,277,244,108,000 SDOs, i.e., 831 Quadrillion ?

— PeckShield Inc. (@peckshield) June 28, 2021

In June, Safe Dollar was hacked again. The developers reported a loss of 9,959 SafeDollar Share (SDS) tokens, worth about $95,000 at the time.

Hackers withdrew a portion of the assets involved in the project’s IDO on PolyDEX. Investors were promised to be reimbursed for losses from the developers’ fund.

In April 2021, siphoned around $6 million from the liquidity pools of the lending protocol EasyFi, which uses Polygon’s second-layer solutions. The attackers gained access to the founder’s computer, Ankitta Gaura’s, and seized the keys to the MetaMask wallet.

In June, the IRON Finance team, which is also Polygon-based, urged users to withdraw funds from pools after the devaluation of the IRON Titanium Token amid a ‘bank run’. Later the developers announced the closure of the project.

As a reminder, RugDoc analysts accused the Beetsfarm Finance administration of siphoning $120,000 from users.

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